- China’s upcoming digital currency is unlikely to utilise the power of blockchain according to Joe Lubin.
- Lubin speaks in CNBC Interview regarding blockchain and China’s cryptocurrency
- Huge advantages for creators on the system
CEO of ConsenSys and co-founder of Ethereum, Joe Lubin considers China’s upcoming digital renminbi unlikely to utilise the power of the blockchain.
Speaking in an interview for CNBC’s Squawk Box Asia earlier today, Lubin argued that the People’s Bank of China (PBoC) has little to gain from the decentralised aspects of the technology.
China’s digital legal tender is set to be controlled by the PBoC and officials have said they expect the digital asset to “have lots of positive impacts, including tracking the money flow in economic activities and supporting making monetary policy.”
Lubin said to CNBC that even though the idea of decentralisation in the blockchain is mostly used to bring in trust “China is probably not interested in that aspect of blockchain. They will, I believe, bring a digital RMB to China that makes use of some of the cryptographic primitives of blockchain technology but there’s no real reason for China to make use of its decentralizing aspects.”
Lubin went onto highlight that if the system was to be designed to be operated by several actors, not just a central bank, there is a lot of potential for advantages to help its creators to further implement the “fuller aspects of blockchain.” However, “it’s probably just about the digital, not the decentralised aspect,” he said.
In regards to the upcoming central bank digital currency, whether it will see a boost for the authorities’ capacity for policing and centralised oversight of capital flows, Lubin downplayed the idea though arguing that:
“I think the central bank and the government have very significant control already. My guess is that it will be used to maintain the control that they have but also to potentially enable interoperation between more public and global systems.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!