Lubin Hopes China CBDC to Be Interoperable With Ethereum Blockchain
Joseph Lubin, who co-founded Ethereum and also established ConsenSys, stated that he trusts China’s Central Bank Digital Currency (CBDC) will permit interoperability with Ethereum and other public, permissionless blockchains. Lubin gave his opinion while speaking to Forbes last week.
Lubin elaborated his thought as follows:
“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.”
Additionally, Lubin looks for increased participation from China in the Ethereum environment. He highlighted the commerce platform used in the Belt and Road project, remarking that it employs a weaker technology compared to public blockchains like Ethereum.
“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.”
Lubin also pointed out that he anticipates that China will continue to take steps to weaken the US dollar’s standing as the global reserve currency. Lubin also trusts that China’s CBCD will not have a great impact in its attempt to weaken the US dollar. He highlighted the attempts made by Russia and China to conduct business without using the greenback as the transaction currency. Lubin explained why the US influence is decreasing across the globe.
“There are lots of reasons why American influence is shrinking and will probably continue to shrink. That may not be a bad thing but in some ways, it’ll be a bad thing. China’s particular cryptocurrency I don’t think is a major factor.”
Lubin also spoke about China’s moves to crush other cryptos that could rise as a competitor to its own, including Ether (ETH). He elaborated that the government’s capability to block access to Ethereum in China relies on advancements in deep packet assessment and the extent to which the country is willing to go to accomplish that.
At last, he acknowledges that the Chinese government “can do it if it wants to.” Nevertheless, new innovations such as satellite-blockchain streaming and mesh networking could offer a method to bypass censorship. When queried whether he trusts China’s CBDC deployment could negate blockchain’s advantages or tamper transparency to track and administer every citizen’s transactions, Lubin stated:
“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.”