Digital Yuan can be set up on Ethereum, Chinese official revelations

• A Chinese SEC official who is involved in the development of the digital Yuan has revealed that the CBDC can be set up in the Ethereum network.
• The virtual currency is currently in the test phase in which different banks are involved, and the government is pushing to introduce them to the upcoming Olympics.

Yao Qian, director of the science and technology regulatory office of the China Securities Regulatory Commission, shared its views on the future of the digital currency developed by China. You could imagine Yao Qian as a second commissioner. In addition, he was equated with a friendly attitude towards cryptocurrencies with "cryptom nut" Hester Peirce.

Since the introduction of the digital yuan in 2014, Qian with the CBDC. At a recent conference, he revealed that the digital Yuan will be more than a simple simulation of a physical currency. According to the expert, the digital currency will develop into a smart currency. This is done via smart contracts. He also finds that this is a way that was examined by a series of central banks such as Singapore, the European Central Bank, the Bank of Japan and Canada.

yao qian, a Chinese SEC officer, said that the digital currency of the central bank can be set up in the Ethereum network. But he said that he only represents personal academic views.

-Wu-Blockchain (@wublockchain) 31. May 2021

Through Smart Contracts, the digital currency can grow into a complex system that includes all modern advantages of the "digital". He added: "We can imagine that central banks can use digital dollars and digital Yuan directly in blockchain networks such as Ethereum and DIEM, to use their Baas services to provide digital central bank currencies without intermediate dealers." “.

he admitted that in the past there have been security risks in smart contracts that force the central banks to simply start and gradually expand. The technology becomes safer if it continues to grow and matures, he explained.

china undermines Bitcoin to strengthen the digital yuan

Although the director's comments reflect his own personal views, reflect the current attitude before the introduction of the CBDC. This start is expected in the coming months and some analysts believe that this is the reason why China has taken measures to take Bitcoin. By limiting the influence of Bitcoin, the government can easily promote digital yuan.

The government has condemned Bitcoin's value and energy consumption in recent weeks. Since China has a major impact on the wider market, the FUD has led to a record pusher last month.

The CBDC is expected to be the first major digital currency and a real threat to the dominance of the dollar. Positioned for international use, it should be faster, cheaper and more transparent than the dollar. As such, it triggered discussions about a digital dollar in the United States. However, high -ranking civil servants have insisted that this is imminent, but there is no immediate need to bring a digital dollar onto the market or to threaten the dominance of the dollar.