As we all know, the legal digital RMB adopts centralized ledger based on UTXO mode, which is maintained and managed by the People's Bank of China, which is inconsistent with the blockchain technology with decentralized distributed ledger as one of the core mechanisms. It is a new breakthrough CBDC application of blockchain technology for blockchain technology companies to take advantage of blockchain technology to participate in digital currency, the central bank.

ConsenSys participates in the research and development of CBDC

It is reported that ConsenSys published the Blockchain Solution of the Central Bank digital currency (CBDC) in official website. The article said that digital currency can provide cheaper cross-border remittances, improve inter-bank payment settlement and accelerate the innovation of retail market. If central banks don't issue their own digital currency, it will lead the market to rely on "private payment tokens", which may lead to the failure of private entities and the risk of financial problems, because private tokens may not be available to everyone, and digital currency, the central bank, will bring a risk-free and widely used alternative.

Charles d'Haussy said that in 216, ConsenSys began to contact with CBDC through cooperation with Singapore Monetary Authority and Reserve Bank of South Africa, and gradually developed the business of cross-border payment technology. "On this basis, we are exploring a bigger concept-'programmable currency', which can be supported by any CBDC with token architecture. CBDC is a perfect iteration of electronic cash, which can improve the utilization rate of central bank funds and ensure a more efficient value chain. "

in addition, ConsenSys recently released a compliance service to help exchanges and decentralized finance (DeFi) projects identify token trading activities that may be related to criminal activities issued by ethereum. Lex Sokolin, co-head of global financial technology at ConsenSys, said, "More and more people are building decentralized applications, which is part of the puzzle. What we are trying to do is to make activities on decentralized financial infrastructure safer, more transparent and easier to track. "

under the background of strong blockchain technology, ConsenSys participates in the research and development of digital currency, the central bank of Australia, France and Thailand, which may make it possible to integrate blockchain technology with CBDC.

Feasibility of CBDC using blockchain technology

Regarding whether the blockchain featuring decentralized distributed ledger can be combined with the centralized central bank digital currency, Yao Qian, director of the Science and Technology Supervision Bureau of China Securities Regulatory Commission, pointed out that whether CBDC adopts blockchain technology is still controversial. A typical view is that the decentralization of blockchain conflicts with the centralized management of the central bank, so it is not recommended for CBDC to adopt this technology.

However, the blockchain technology is developing at an unprecedented speed, and it is deeply integrated with various mainstream technologies. Therefore, the understanding of blockchain in real applications is different from that of "fundamentalism" from both technical and business perspectives. How to use blockchain technology to better serve the distributed operation under centralized management may be the direction that CBDC needs to focus on at present.

Yao Qian believes that although the technical feature of blockchain is that it does not depend on central institutions, it does not mean that it cannot be incorporated into the system of existing central institutions. As long as it is reasonably designed, the central bank can effectively integrate distributed operations by using blockchain to better realize centralized control of CBDC, and there is no inevitable conflict between them. As an emerging technology that may become the financial infrastructure in the future, blockchain will help realize distributed operation without affecting centralized management for the dual mode of central bank and commercial bank. The bottom-up "exchange" can make a brand-new CBDC implementation scheme, which at the same time realizes the goal of "centralized management and control and distributed operation".

the digital currency research project announced by the Australian central bank is to explore the potential use and influence of the central bank digital currency (CBDC) which uses distributed ledger technology (DLT).

under this project, Australia will develop a concept of issuing CBDC in token form, which proves that market participants will be able to use this CBDC to finance, settle and repay the token syndicated loan on the DLT platform based on Ethereum. The project is expected to be completed around the end of 22, and all participants in the project plan to release a thematic report on the project and its main findings in the first half of 221.