Joseph Lubin: Ideally China’s Digital Currency Ought to Allow Interoperability with Open Blockchains
China’s Central Bank Digital Currency has crypto stakeholders within the FinTech space speculating on its opportunities. Joseph Lubin, the founder of Consensys and a co-founder in Ethereum, said that he wishes China will allow interoperability with public blockchains like Ethereum during an Interview with Forbes.
Lubin further noted that he wants to expand Ethereum’s market in China. He made a comparison of this platform with the Block and Road blockchain which uses a less efficient ecosystem for e-commerce deliverables in the digital currency world.
According to Lubin, Ethereum is also more popular;
“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.”
As for regulation, Lubin believes that the Chinese authorities will implement and maintain what best serves its leadership. The Ethereum co-founder is hopeful that the CBDC set for launch within China will accommodate open digital ledgers within its design.
The dollar has been under pressure in the recent past to maintain its global status as the currency peg. Lubin says that its influence will further be influenced with China’s CBDC given they have reduced the business conducted in USD over time. Russia has been on a similar trend and therefore the U.S dollar might continue to suffer.
China’s CBDC Regulation
This economy has a great potential given over 1 billion people reside within China. However, regulation is a big part of the Chinese way of governance hence only changes that seem to fit their philosophies can be accommodated. The Chinese government can, therefore, extend its oversight into any area affiliated or can access its digital currency.
Lubin added that censorship may not be completely effective given there are technologies like mesh networking and satellite blockchain streaming to overcome some hurdles.
He also responded on the possibility of China disrupting the blockchain ecosystem and its fundamental features like transparency;
“China is a business that writes its own rules and has an enormous customer base — 1.4 billion people. That’s a tough economic force to compete with. I do think there’s an instability. I think leaders are constantly terrified of revolution, so they have to keep the people relatively happy at some baseline level.”