China’s National Digital Currency is Anything but Decentralized says Ethereum Co-Founder | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
China’s national digital currency is in the works, which would monitor transactions and curb money laundering. However, according to a recent interview with CNBC on November 5, 2019, Ethereum co-founder, Joseph Lubin, believes that China’s central bank digital currency (CBDC) lacks a key component of blockchain technology, which is decentralization.
China’s Central Bank Digital Currency Not Decentralized
According to an earlier report by BTCManager, China revealed its plans to launch a central bank digital currency (CBDC), a project led by the country’s central bank. The move by China seemed like a turnaround from its previous negative stance against bitcoin and cryptocurrency in general.
But Lubin, who is also the founder of ConsenSys opined China’s CBDC is just a digital currency and nothing more.
China is probably not interested in that aspect of blockchain technology. They, I believe, will bring a digital RMB to China that makes use of some of the elements, some of the primitives, say cryptographic primitives of blockchain technology. But there is no real reason for China to make use of decentralizing aspects of blockchain technology.
Lubin added that the only way China’s national currency would adapt the full characteristics of distributed ledger technology (DLT) is if there are other stakeholders apart from the People’s Bank of China (PBoC) involved in the project. The Chinese government earlier stated that it was in no hurry to launch its CBDC.