Yao Qian, a former employee of the People’s Bank of China’s Digital Currency Research Institute, claims that a central bank digital currency can operate on the Ethereum network.
Architect of digital yuan says CBDC can be established on Ethereum network
During the spring meetings of the 2021 International Finance Forum (IFF), Yao Qian said that a central bank digital currency (CBDC) could operate directly on the Ethereum network. Yao states that there should be seven characteristics to consider when researching and developing a CBDC. Among the features Yao highlighted are:
- technical route
- value properties
- operational architecture
- interest accrual
- implementation of smart contracts
- regulatory issues
Yao also states that digital currency cannot be a “simple simulation” of physical money and that this creates a new situation for creating smart money. On the other hand, Yao also points to the vulnerabilities of smart contracts, claiming that the technology should mature. From a regulatory standpoint, Yao calls for a perfect balance between protecting users’ privacy and ensuring compliance with basic anti-money laundering and Know Who Are Customers (KYC) guidelines.
“The father of crypto”
Let’s say that Yao actually has an interesting side. Yao is called the “Crypto Father” of China. He is also known as one of the most influential people in the blockchain industry. Until September 2019, he was the head of the digital currency research subsidiary of the People’s Bank of China (PBOC). Of course, he also has a warning about his views. He states that their approach is his personal opinion and not the official opinion of the People’s Bank of China.