China's national cryptocurrency will be smarter than its physical counterpart
Yao Qian, a spokesman for China's Science and Technology Regulatory Bureau, shared his vision for the future of the digital yuan. In the cryptocurrency community, he has already been given the nickname "crypto-pop" by analogy with the representative of the US SEC Hester Peirce, called by enthusiasts "Crypto Mom".
Qian was at the origin of the digital yuan and was involved in the CBDC project since 2014. According to him, China's national cryptocurrency will be more than a simple simulation of physical money. It will be "smarter". Smart contracts will help her in this, thanks to which the CBDC will form a complex system that has absorbed the best aspects of “digitalisation”.
As part of the infrastructure of the future CBDC and work on blockchains like Ethereum and Diem, Qian said global central banks will be able to use BaaS services to present their tokens to customers without the necessity for agents.
He also acknowledged that in the past, smart contracts have been exposed to safety risks more than once. But the technology did not stand still and was actively fixing bugs, continuing to expand its influence in the cryptocurrency industry, and achieved notable success.
Based on the attitude of the representatives of the Chinese bureau, we can conclude that part of the policy of “banning” the main cryptocurrency and complicating the life of miners may be directly related to the promotion of the digital yuan. Plus, never underestimate China's impact on the record-breaking global FUD this May.
Many cryptanalysts agree that China's CBDC could pose a real threat to the dollar's dominance. Positioned at the level of international use, the yuan is faster, more transparent, and cheaper than its American counterpart. Although the US authorities are still reluctant to acknowledge the fact of the potential danger, both for their stablecoins and for the dollar itself.