Ethereum’s co-founder Joseph Lubin, who is also the founder of Consensys, commented on the Chinese government’s digital currency in an interview with Forbes on 9 November. He talked to Forbes about various topics like Ethereum 2.0, the market position of Consensys, 5G technology, and the blockchain world in general.
Lubin stated that he hoped that China’s Central Bank will be interoperable with public blockchains like Ethereum. However, he also stated that it depends entirely on China. If the country wants to keep the currency open and recognize it as a way to counter the American reserve currency status, then it will preferably allow openness and interoperability.
He also talked about how currency use can change over the years mentioning the speed of the spread of Alipay. Therefore, it will be interesting to see how consumers all over the world will react to a digital Yuan, as per Lubin. He further stated that a future where Americans will be using Yuan for getting bread may not be far away.
However, according to Lubin, the Chinese government can censor cryptocurrencies including ETH on its sovereign soil if it wants. Yet, he mentioned that new technologies like satellite blockchain streaming and mesh networking can undercut the censorship.
Will China Use its CBDC to its Benefit?
Lubin had more to add in respect to China’s capacity of using its digital currency for subversive purposes which will reduce freedom. That is to say, transparency and prevention of money laundering among other things can be used by the Chinese government as excuses to surveil people’s transactions.
In passing, however, Lubin also suggested how Ethereum technology can be used by the Chinese government for its One Border One Road initiative, which presently uses a much weaker blockchain. This can be a game-changer, especially given the kind of cross border ambitions the country is delineating.