China this week took the next step in creating its long-discussed national digital currency. Its parliament passed a new cryptography law designed for “facilitating the development of the cryptography business and ensuring the security of cyberspace and information,” according to media reports. 

China first floated the idea of digital currency in 2014 as a way to reduce the costs of circulating and handling paper currency and, of course, exert more control over the monetary supply. 

Indeed, the control factor is behind the plans of several central banks to create national digital currencies as a way to regulate how and when people can use cryptocurrencies. We’ll likely see more of these plans arise over the next several years.