In a surprising announcement, a top official from the Chinese regulatory authority said that the central bank-backed digital currencies could be based on the Ethereum blockchain.
While talking at the International Finance Forum’s event, the technology and science head at the CSRC, Yao Qian, said that the CBDC’s could be based on both Ethereum and the social media giant Facebook’s Diem blockchain. Qian said,
We can imagine that if the central bank’s digital currency runs directly on blockchain networks such as Ethereum and Diem, then the central bank can use their BaaS services to directly provide the central bank’s digital currency to users without using intermediaries.
Referring to the operations of the CBDC’s, he highlighted as many as seven key aspects when creating and researching a government digital asset, including regulatory issues, operational structure, and implementation of smart chain, among others.
Although Qian made a case for developing smart currencies that should not stipulate physical cash, he called for the smart chain technology to mature first.
Interestingly, while referring to the regulator’s measures, the CSRC’s top official called for a balanced approach that ensures the security of users’ data as well as complies with the government financial laws.
Back in China, Qian holds quite a reputation for his public support for the new form of currency and is also known as the “Crypto Dad” of the Asian nation. Reportedly, he was at the front foot in the development and launch of China’s digital Yuan.
In his closing remarks, he told the audience that it is important to note that these were his personal opinion.