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China Will Avoid Blockchain’s ‘Decentralizing Aspects’, Says Joe Lubin

Ethereum’s co-founder and CEO of ConsenSys Joe Lubin say that China’s forthcoming digital renminbi is unlikely to use blockchain.

On Nov. 6 Lubin gave an interview for CNBC’s Squawk Box Asia where he argued that the Central bank of China has little to gain from the decentralized aspects of the technology.

China’s central bank digital currency will reportedly be controlled by the PBoC and officials have said that they expect the asset to “have lots of positive impacts, including tracking the money flow in economic activities and supporting making monetary policy.”

Lubin told CNBC that while the principle of decentralization in blockchain is used to establish trust:

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

Lubin added that the system should be designed to be operated by multiple actors and not just by a central bank, it’s possible there would be advantages for its creators to implement the “fuller aspects of blockchain.” However, “it’s probably just about the digital, not the decentralized aspect,” He adds:

“I think the central bank and the government have very significant control already. My guess is that it will be used to maintain the control that they have but also to potentially enable interoperation between more public and global systems.”


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