Joseph Lubin: “China is unlikely to use a decentralized blockchain for the digital yuan»

Joseph Lubin: "China is unlikely to use a decentralized blockchain for the digital yuan»

Ethereum co-founder and ConsenSys CEO, Joe Lubin, believes that China will try to avoid the decentralized aspects of the blockchain when developing the digital yuan.

The people’s Bank of China (PBOC) believes that the launch of the digital yuan “will have many positive aspects, attract more money to the economy and support monetary policy.” Naturally, the digital currency of the Central Bank of China will be controlled by the Central Bank.

“China is hardly interested in decentralization. I think they will launch a digital yuan in China that will use some cryptographic capabilities, but it doesn’t make sense for China to launch a decentralized currency,” Lubin said in an interview
to CNBC.

Lubin considers it an exaggeration to say that the digital yuan will allow the Central Bank of China to better control cash flows.

“I think the Central Bank and the government already have very significant control. The digital yuan will simply maintain the level of control over cash flows that they already have. But it will also allow more state and global systems to interact,” said the ConsenSys CEO.

Recently, Huang Qifan, Vice Chairman of the China center for international economic exchange (CCIEE), said that the people’s Bank of China will be the first in the world to issue a state-owned cryptocurrency.