Many central banks and governments are working to digitize their national currencies. China and Russia are exploring the potential of the Etherium as a basic protocol for the digital yuan and the ruble.
Currently, the Chinese Mint is testing the Etherium and its ERC 20 standard for the digitization of the Chinese yuan. As the head of international business development ConsenSys, Andrew Keys (Andrew Keys), the Central Mint of China is at the forefront of research in the field of digital money.
The Central Mint of China is considering the possibility of producing unique tokens that are compatible with the network of the Etherium, using the standard ERC 20. Such coins will have high liquidity and interoperability.
The Chinese mint at the moment "focuses on researching and studying the forefront of the digital currency area, actively taking part in innovation and applying knowledge about digital currencies, mobile finance, building smart cities and Internet finance in practice. In addition, he promotes the introduction of blocking technology in the field of finance and related areas ", writes Kees.
Along with the Chinese government, Russia has also begun to study the Ethereum and its potential for the financial sector. Although the technical specifications and details of the national digital currency project of the Central Bank of Russia remain undisclosed, in 2016 the Bank of Russia announced the development of a prototype inter-bank block project on the basis of the Etherium under the name "master's". Some of the largest commercial banks of Russia participated in the pilot test, and recently the deputy chairman of the Bank of Russia expressed optimism in relation to the crypto currency.
"Legislators of all countries agree that it's time to develop national crypto-currencies - for them the future. Each country determines for itself the terms of development of such projects. After the end of our pilot project, we will understand what system we can use for our national currency, "said Olga Skorobogatova at the St. Petersburg International Economic Forum, which was held in early June.
In early 2017, the co-founder of the Etherium, Vitalik Buterin, said that one of the main directions of the Enterprise Ethereum Alliance (EEA) is the provision of infrastructure solutions to large commercial companies. As the Etherium becomes an increasingly flexible and functional network, it will allow central banks, such as the People's Bank of China and the Bank of Russia, to consider the actual opportunities for creating serious applications and even national currencies over the Etherira protocol.
According to Bloomberg, during the St. Petersburg Forum, Putin stressed the potential of blocking technology to create new business models. "The digital economy is not a separate industry, but an essential component for the creation of new business models," Leonid Bershidsky, the first editor of Vedomosti, added, adding that the transition to the Etherium is part of the strategy to create a competitive advantage over the West, China and Japan and the diversification of the Russian economy from oil.
It is also worth noting that the People's Bank of China and its official representatives noted that the Etherium is moving in the right direction in terms of strategy and its vision. The Central Bank of China also shows enthusiasm for the ICO and intends to deal with the regulation of this market in the near future.
Expressing optimism about Efrum's development, Yao Qian, deputy director of the Department of Science and Technology of the People's Bank of China, said:
"You can create a real smart business application. That's why smart contracts are developing so quickly. "
Central banks are unlikely to consider options for using the public blockbuster Efirium, the movement of the tokens in which it will be impossible to control. In addition, all operations will be visible in an open detachment, which will not go to any Central Bank or government. Probably, in the case of the development of the project on the technical basis of the Etherium, it will be a question of fork with the possibility of centralized control.
source https://btcmanager.com/russia-china-to-digitize-currency-with-ethereum/