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

News
Wed, 11/06/2019 - 11:40
Yuri Molchan

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

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.

Related
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.

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

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, can be contacted at yuri.molchan@u.today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

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