China is all set to launch its own digital currency.  Chinese  parliament has passed a new law on cryptography as the country is planning to implement its own currency by January 1st 2020 . The news of the new law was revealed by Chinese state media.

While China still bans crypto currency trading and its national digital currency is not yet hatched, cryptography, as an integral underpinning of block chain technology, could be key to the country’s push to be more competitive in the block chain space.

The new law aims to tackle emerging regulatory and legal challenges in commercial cryptography use-cases as they play an increasingly important role in developing the Chinese economy, according to the law’s latest draft proposal  prior to approval.

China’s central bank set up a research team in 2014 to explore launching its own digital currency to cut the costs of circulating traditional paper money and boost policymakers’ control of money supply.

China’s proposed new digital currency would bear some similarities to Facebook Inc’s Libra coin and would be able to be used across major payment platforms such as WeChat and Alipay, a senior central bank official had said last month.

China’s cryptography law, which takes effect on Jan. 1, is aimed at “facilitating the development of the cryptography business and ensuring the security of cyberspace and information”, the official Xinhua news agency said, citing parliament. The law states that the state encourages and supports the research and application of science and technology in cryptography and ensures confidentiality.

Chinese President Xi Jinping said last week that the country should accelerate the development of blockchain technology as a core for innovation.

The proposal includes a range of issues from how compatible the industry standards should be with other international cryptography systems to whether companies should voluntarily verify their commercial use-cases with authorities.

According to the Chinese congress, the new law will also encourage nationwide educational efforts, such as public exhibitions, to promote cryptography among government officials, companies and social groups.