China’s government is pushing hard for the country to take a lead in cryptography with government demands for an accelerated adoption of blockchain and crypto-currencies.

China has passed a law for ‘facilitating the development of the cryptography business and ensuring the security of cyberspace and information”.

The law, which takes effect on January 1st, says that the China government encourages and supports the research and application of science and technology in cryptography.

Last week President Xi Jinping said China should accelerate the development of blockchain to promote innovation – a statement which has seen a surge today in the shares of blockchain-related stocks with over 60 hitting their 10% limit on the Shanghai and Shenzhen stock  exchanges.

Earlier today, Li Wei, head of the Peoples’ Bank of China, said in Shanghai that banks should be accelerating their adoption of blockchain tech.

China is reported to be about to launch its own cryptocurrency which it sees as a way to greater control of the money supply,  and a route to cutting the costs of  running a currency system based on paper money.