The founder of ConsenSys, Joseph Lubin, who is also known as the Ethereum co-founder recently said that he hopes that China’s Central Bank Digital Currency (CBDC) will allow for interoperability with public permissionless blockchains such as Ethereum.
“I assume it is going to be exactly what Chinese leadership thinks is most beneficial to Chinese leadership. Hopefully that’s also open and we can interoperate with it, but I don’t know,” the Ethereum co-founder explained in one of this most important thoughts.
Furthermore, Lubin added that he would like to see increased participation from China in the Ethereum ecosystem. He also cited the case of the Belt and Road blockchain-based commerce platforms and noted that it uses one of the “weaker technologies” compared to the public blockchains such as Ethereum.
“I would love to help China get expert in Ethereum technology. […] The main idea is that Ethereum is the strongest of the blockchain technologies and it’s a very positive virus to implant in people’s minds,” Lubin noted.
The Ethereum co-founder who designed the network along with Vitalik Buterin also said that he expects China to continue undermining the US dollar and its status as the world reserve currency. However, he also noted that he believes that the China CBDC national currency will only have a minor impact in this regards.
“There are lots of reasons why American influence is shrinking and will probably continue to shrink. That may not be a bad thing but in some ways, it’ll be a bad thing. China’s particular cryptocurrency I don’t think is a major factor,” the Ethereum co-founder concluded.
As a last resort, Lubin also address the willingness of China to obstruct access to digital currencies all because they will compete with its own. He explained that the government and its ability to impede access to ETH in China depends on progress in the deep packet inspection and how motivated the nation will be to this end.
When asked about the China CBDC and whether he truly believes in its implementation, Lubin added:
“China is a business that writes its own rules and has an enormous customer base — 1.4 billion people. That’s a tough economic force to compete with. I do think there’s an instability. I think leaders are constantly terrified of revolution, so they have to keep the people relatively happy at some baseline level.”
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