0
📰 News
746 views

Ethereum Co-Founder: China’s DCEP Is Not about Decentralization, It Is about Financial Control

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Yuri Molchan
    📰 News

    Ethereum co-founder Joseph Lubin speaks to CNBC, commenting on the Chinese crypto DCEP and saying why it is not crypto in the direct sense of the word

Ethereum Co-Founder: China’s DCEP Is Not about Decentralization, It Is about Financial Control
Cover image via www.facebook.com
Contents

CNBC caught Joseph Lubin, a crypto billionaire and Ethereum co-founder, among a busy day and got him to share his thoughts on DCEP (digital currency electronic payment) often referred to as ‘China Coin’.

The expert in the blockchain technology and cryptocurrency explains his view of the digital version of RMB and says why its upcoming launch is not about decentralization and why it is very different from Ethereum.

Will DCEP be simply a digitized yuan?

Joseph Lubin, who is also the founder of ConsenSys, reckons that China is not interested in the decentralizing aspect of crypto, since the Central Bank (PBOC) is going to hold DCEP unter a tight control. He believes that ‘China Coin’ will be merely a digital version of yuan.

“From decentralization you get trust. China is probably not interested in that aspect of blockchain technology. They, I believe, will bring digital RMB that makes use of some elements, some of cryptographic primitives of blockchain technology, but there’s no real reason for China to make use of decentralizing aspects of blockchain.”

“The digital RMB is probably about just bringing a digital aspect of the currency.”

When answering a question of the CNBC anchor, Lubin stated that the central bank in China already has a very substantial control over money flows of both companies and regular citizens inside the country. He believes, DCEP will be used to keep controlling those financial flows.

Lubin also expressed a hope that China will allow for some openness to use global public mainnets, such as Ethereum and others.

👉MUST READ

XPR Ledger to Add Smart Contracts as Ripple’s Xpring Invests in Flare Networks

XPR Ledger to Add Smart Contracts as Ripple’s Xpring Invests in Flare Networks

China changes its mind on banning cryptocurrency mining

Earlier on Wednesday, U.Today reported that China has reversed on its initial plan about prohibiting crypto mining and has taken it off the list of industries that were to be eliminated.

This seems to be one of the consequences of the recent statement made by the head of the China’s Communist Party, Xi Jinping. He stated that from now on China is going to benefit from the opportunities offered by the blockchain technology rather than just walk past them.

However, China still prohibits crypto trading, including trading Bitcoin, as if wishing no DCEP competitors to be around when it is finally launched.

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted
0
📰 News
390 views

Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Vladislav Sopov
    📰 News

    According to its Financial Stability Report of November 2019, the Board of Governors has warned about the dangers of stablecoins.

Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability
Cover image via
Contents

The Board of Governors of the U.S. Federal Reserve System have issued their monthly Financial Stability Report. This special report is dedicated to the profits and risks of "global stablecoins".

Stablecoins: Global System with So Many "Ifs"

First, the Federal Reserve admits to the numerous advantages that stablecoins present as a concept. It has been highlighed that stablecoins are "faster, cheaper, and more inclusive payments could complement existing payment systems". This is in comparison to cases where traditional financial institutions are sophisticated and poorly accessible. Stablecoins can also be managed to eliminate the volatility of cryptocurrencies, which is one of the borders for them to be utilized as the medium for exchange.

Therefore, the "global stablecoin initiatives" like Facebook's Libra can rapidly achieve cross-border adoption. However, the major threat for stablecoins is apparent - the "inability to convert in national currency". The loss of confidence in "pegging" the stablecoin to traditional assets can lead to a run, in which several holders will attempt to liquidate their stablecoins at the same time.

👉MUST READ

Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research

Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research

This dramatic scenario may be caused by "poor design and governance", and can result in severe consequences for international economic activity, asset prices, and financial stability.

Transparency First

The Federal Reserve also outlined in its report that in many cases, stablecoins can be utilized for money laundering, terrorist financing, and other financial crimes. Therefore, the Federal Reserve would require operators of such systems to conduct their Due Diligence, as well as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to avoid any abuse. Moreover, the problems of disclosure policy and protecting investor data should be of paramount importance for stablecoin issuers:

Disclosures should clearly detail consumer and investor rights and protections, including whether the holder of the stablecoin has any rights to the underlying asset. Issuers should be transparent on how the stablecoin is tied to the underlying asset, has been said in the Report.

Last but not least, the report highlighted that the Federal Reserve, together with the Group of Seven, will closely monitor stablecoin developments as well as all the risks associated with it.

Have anyone ever invested in stablecoins? Do you prefer to use it, or to pay extra fees for fiat gateways? Tell us your story on Twitter!

Only the most important posts per day. Infographics, analytics, reviews & summaries. Follow us on Facebook!

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings