Ethereum co-founder Lubin comments on Libra and China’s PBOC-backed digital currency

CNBC’s Squawk Box Asia interviewed Ethereum’s co-founder Joseph Lubin where he talked about the impending grand projects, Facebook’s proposed Libra and China’s digital currency.

In his opinion, Lubin says that Facebook is not the right entity to head Libra. He said that light of Facebook’s questionable track record with trust, data protection and personal identity. Facebook has in the past used users’ data to push the company agenda and even monetize the information without the required permission. Lubin believes that Libra-like digital assets will be key players in cross-border payments and future commerce. He said:

“We’ll see many Libra-like projects going forward with different kinds of price-stable currencies offered.”

Regarding China’s soon to be launched digital currency, Lubin said that it is unlikely that the project will have decentralized features. “There’s no real reason” for the digital currency to incorporate decentralized mechanisms according to Lubin.

He added:

“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.”

China’s central bank digital currency will fall under the governance of the People’s Bank of China (PBoC). Therefore, blockchain aspects more complex than the “cryptographic primitives of blockchain technology” could be left out.