Former Head Of The Digital Currency Project Of The People’s Bank Of China, Yao Qian, Believes That National Digital Currencies Must Become “Smart” And For This Purpose They Can Use Systems Such As Ethereum And Diem (Formerly Libra). This Way They Will Be Able To Remain Competitive In The Face Of Widespread Digitalization.
Qian Spoke At The International Financial Forum In Beijing Over The Weekend, Where He Announced That Central Bank Digital Currencies Should Not Only Mimic The Function Of Cash, But Also Support Smart Contract Capabilities. At The Same Time, He Noted That Security Problems Are Often Associated With Smart Contracts, So This Technology Cannot Yet Be Considered Sufficiently Mature. It Is Also Necessary To Regulate The Legal Status Of Smart Contracts, He Added. Qian Suggests That Central Banks Start With Simple Smart Contracts And Gradually Increase The Complexity Of The Systems.
Qian Is The Author Of Numerous Patents Related To The People’s Bank Of China’s Digital Yuan Work. He Currently Serves As Director Of The Science And Technology Oversight Bureau Of The Prc Securities Regulatory Commission.
He Also Admitted That Digital Currency Can Be “Two-tier”, Comparing Such A Mechanism With Buses And Taxis, The Existence Of Which Does Not Exclude Each Other, And Users Themselves Can Choose The Most Convenient Option. He Cited As Examples The Work Of The European Central Bank, The Bank Of Japan, And The Central Bank Of Canada, All Of Which Have Experimented With Smart Contracts.
“we Can Imagine A Situation Where The Digital Dollar Or Digital Yuan Will Work Right On Networks Like Ethereum And Diem. Central Banks Would Then Be Able To Provide Their Digital Currency Directly To Users Without The Need For Intermediaries. A Tiered Model Could Enable Central Bank Digital Currencies To Better Serve Consumer Groups Without Bank Accounts For Broader Adoption Of Financial Services, ”qian Explained.
