Since the news of China developing its own central bank digital token was confirmed, there has been speculation about what the token will be called, how it will function and what this means for the cryptocurrency industry both within China and around the world. Cryptocurrencies are currently banned within China and it is believed that this new central bank-issued token is a means of creating an in-house crypto industry in China that will not be reliant in any way on foreign cryptocurrencies or crypto-related firms.

In a November 9, 2019 interview, Joseph Lubin, the cofounder of Ethereum and Consensys, stated that he hopes that once the central bank-issued token is launched in China, it will allow for interoperability with permissionless blockchains.

Across Borders 

In his interview, Lubin expressed hopefulness that China will eventually be able to participate with other crypto ecosystems once their token launches.

“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,” he said. 

Lupine made reference to the other commerce platforms and stated  that they are one of the weaker blockchain ecosystems.

“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,” he said. 

Lubin also touched on the fact that China’s central bank-issued token is not merely a means of creating their own crypto sector but also a means of trying to undermine the United States’ economic power and the power of the US dollar as the world reserve currency. According to him, similar efforts have also be made within Russia but he does not believe that the central bank-issues token will be a major factor in this situation. According to him, due to the level of China’s population and resources, they could very well skirt around US dominance if they wanted to and this new token could be another small step in that direction.

What's your reaction?
Leave a Comment