Cryptocurrency News

Ethereum Could Power CBDCs, Says Chinese Government Official

Yao Qian, a member of The China Securities Regulatory Commission, presented a case where possible Digital us dollars And Digital Yuan runs on top of Ethereum’s network. Government official spoke at the International Financial Forum (IFF) 2021 in Beijing on 30 MayTh.

The aim of the summit was to discuss the post-pandemic world and ChinaPossibility of international participation. Qian was part of a forum titled “Digital Currency and the Future Digital Transformation”.

During the event, the government official said that digital assets and central bank digital currency[CBDC]should move beyond the traditional concept of money and take advantage of the benefits brought by innovation in the cryptocurrency industry. Qian said: “The future of digital currency will certainly move towards smart money”.

Despite this statement, the government official disclosed that there are concerns regarding the integration of CBDCs with smart contract features. Was part of kian digital currency of the central bank of china Research and development, an initiative responsible for the development of its digital yuan. Qian said:

CBDCs are only meant to act as a payment method, but Qian emphasized the potential for citizens to benefit from the new technologies. This can allow the money to be taken one step further. Qian said:

We can imagine that if the digital dollar and the digital yen were operating directly in blockchain networks like Ethereum and Diem, central banks could use their BAS services to provide central bank digital currencies directly to users without the need for intermediaries. Were. Single-tier operations could enable central bank digital currencies to better benefit people without bank accounts and achieve financial inclusion.

However, some inside the government still believe that the technology that powers cryptocurrencies and Smart contract need to mature.

Is it possible for CBDC to work on Ethereum?

However, Qian’s comments were personal and not representative of the Chinese regulator. The report was shared by Wu Blockchain, and he referred to Qian as the counterpart of US Securities and Exchange Commission Hester “Crypto Mom” ​​Pierce.

Yao Qian is the only official in China’s financial regulators who has done extensive research on cryptocurrencies and has a friendly attitude (…).

When asked to specify whether Qian was referring to Ethereum’s source code to create the China Management Network for its digital yuan or the cryptocurrency’s mainnet, Wu said the government official was talking about the latter. .

Even as an academic project, Wu said Many users believe that gas fees would make CBDCs on Ethereum an unviable option.

They mean on the eth mainnet, but people think it is impossible to carry such a large transaction volume, think 200,000 GVE?

while writing, ETH Trades At $2,613 after seeing higher selling pressure during the weekend. While the daily and weekly charts are in gains, the higher time frame still registers minor losses.

ETH is trending up in the daily chart Source: ETHUSD Tradingview

research firm Jarvis Labs The signal As seen below, ETH price experiences a “sell” on every attempt to reclaim the previous high.

Source: Jarvis Labs

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