Vitalik Buterin: CBDC Could Interact With Crypto
Vitalik BUTERIN in a recent press release has shared his opinion that the digital currencies of central banks can coexist with crypto. In addition, Buterin has added, the interaction of CBDC and crypto could be a new step in the development of crypto trading.
Important tech question about these CBDCs that are starting to pop up (CC @mg0314a): will transactions be cryptographically provable? That is, if I send you N coins, can I generate a cryptographic proof that this happened that can be verified on the ethereum chain? ...
— vitalik.eth (@VitalikButerin) February 4, 2020
If these transactions are carried out on the Ethereum blockchain, it will be easy to use an automated smart contract. If CBDC and crypto are compatible, it will be easier for traders to carry out trading transactions with crypto and fiat in the form of digital assets.
According to Buterin, the workflow is quite simple: two people agreed to pay each other with different forms of currency. For the N-amount of Ethereum, someone wants to receive a fiat digital currency, for example, the Chinese digital renminbi. The question is, how can they make sure the other person pays? To do this, you need to create a smart contract that is designed so that when one person completes one of the transactions, the transaction of the other is performed automatically.
The founder of Ethereum is interested in the matter reasonably. A couple of years ago, the Central Bank unanimously rejected the issue of digital currency. Since the end of 2019, many of them have become seriously interested in CBDC. Vitalik BUTERIN has positive views on development and interaction of crypto with digital currencies of the Central Bank. For further development it is necessary that CBDC transactions are cryptographically proven.
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