The recent developments in the China blockchain ecosystem in the past three weeks have raised the eyebrow of crypto lovers in the community, giving them hope that China may authorize crypto soon. We had reported that China is set to launch its digital currency DCEP.
This news has also been making waves with different crypto analysts debating the merits of this new currency. Ethereum co-founder Joseph Lubin is the latest to wade in his sentiment during an interview with US media house CNBC. Lubin shared his thoughts on the new currency and revealed that China were not interested in decentralization but want more financial control.
Lubin believes that DCEP is simply a digitized form of the physical Yuan currency since the Central Bank of China will be fully in control of the new currency.
DCEP Launched To Counter US Financial Dominance
Lubin is right in this aspect as the vice-chairman of China Center for International Economic Exchanges (CCIEE), Huang Qifa, revealed during the announcement that the digital currency was in response to the United States dominance of the financial scape.
Since the United States is largely in control of SWIFT which is the number one system used in transferring money to banks across the world. DCEP will be much cheaper and faster, and China hopes it can swing the pendulum to compel more financial institutions to adopt the digital currency.
Despite these advantages, there is largely skepticism about DCEP as China is known for maintaining substantial control of the money that circulates within the country. This is largely at odds with the aims of digital currencies especially cryptocurrencies which aim to reduce financial control from government authorities.
China Reverses Ban On Crypto Mining
It was reported on Wednesday by news agencies within China that the government authorities have reversed their initial policy of prohibiting the crypto industry. China has the largest number of Crypto miners in the world with the country previously cracking down on the practice.
However, President Xi Jinping is leading the campaign to make the Asian nation become a top country in the blockchain industry.