China Securities Regulatory Commission (CSRC) chief technology and science control officer Yao Qian suggested China’s central bank’s (CBDC) digital currency, the digital yuan to run on Ethereum’s network or Facebook’s blockchain payment system, Diem.
The statement was made at an official meeting of the 2021 International Finance Forum (IFF) held recently.
He further explained that through the initiative, the central bank has the opportunity to use BaaS services for the direct provision of digital yuan to consumers without intermediaries.
However, 7 aspects need to be emphasized: 1. technical pathways, 2. attribute values, 3. operational framework, 4. accrual benefits, 5. grant/distribution, 6. smart contract implementation, and 7. legal issues.
For example, for the implementation of smart contracts, Yao hopes that the technology is 'mature' first.
And with regards to legislation, Yao will ensure the protection of consumer privacy and it complies with the basics of anti-money laundering policy and know your customer.
However, the proposal does not represent the Public Bank of China (PBOC). In any case, the implementation of the digital yuan depends on the institution whether it is continued based on Yao’s proposal or vice versa.
This figure is synonymous with the title ‘crypto father’ because of its influence in the blockchain industry. He even held the position of director of the Digital Currency Research Institute, PBOC before being replaced by Mu Changchun in September 2019.
