How Ethereum Could Power a CBDC, According to a Chinese Government Official

Yao Qian, member of the China Securities Regulatory Commission, presented a case of a possible digital US dollar and digital yuan walking on the Ethereum network. The government official spoke at the International Finance Forum (IFF) 2021, held in Beijing on May 30. The summit aimed to discuss the post-pandemic world and China's potential for international partnership. Qian was a part of the forum "Digital Currency and the Digital Transformation of the Future". Speaking at the event, the government official said that central bank (CBDC) digital assets and digital currencies should go beyond the concept of traditional money and reap the benefits that innovation brings in the crypto industry. “The future of digital currencies will definitely move towards smart money,” Qian said. Despite this statement, the government official expressed concerns about the integration of a CBDC with smart contract functions. Qian was part of China's central bank digital currency research and development, an initiative responsible for developing the digital yuan. Qian said: CBDC was designed only as a payment method, but Qian highlighted the opportunities for citizens to benefit from new technologies. This can take money a step further. Qian said: “If the digital dollar and digital yen go directly into blockchain networks like Ethereum and Diem, we can imagine that central banks could use BaaS services to deliver central bank digital currencies directly to users without intermediaries. Single-tier operations could enable central bank digital currencies to better benefit the unbanked and enable financial inclusion. However, some people within the government still believe that the technology powering cryptocurrencies and smart contracts needs to mature. Is it possible for a CBDC to run on Ethereum? However, Qian's comments were personal and not representative.

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