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This document shows how Ethereum can help central banks create their own cryptocurrencies


A technical document Produced by the blockchain-centric technology company ConsenSys presents to the central banks a digital currency proposal based on the Ethereum blockchain. The document entitled "Central banks and the future of digital money" was prepared on January 20 and presented at the World Economic Forum (EMF) held in Davos, Switzerland. An excerpt from the technical document highlights:

“We propose that central banks issue CBDC (acronym for Digital Currency of the Central Bank) in a large-scale private network, based on Ethereum, in which the intermediaries designated by the central bank act as nodes and service providers. . «

CBDC Featured

The CBDC gained prominence during the Davos Forum. At that time, a “toolkit” was even launched to create digital currency of the central bank in order to help governments around the world understand if the implementation of a CBDC would be advantageous and guide them in its design.

Now, it was Ethereum's turn to present the advantages of a CBDC based on its blockchain. In the technical document , the CEO of ConsenSys and the co-founder of Ethereum, Joseph Lubin, and other authors point out that Ethereum would help entities issue their digital currencies. Central banks could authorize and integrate intermediaries to distribute CBDC directly to the public. The authors add:

“Using an authorized blockchain, central banks would maintain control over the integration and distribution of CBDC to the intermediaries they choose, and therefore maintain supervision and control, allowing them to act as guardians of the ecosystem without having to provide or manage Your own services. . «

In addition, the authors point out that Ethereum has the largest community of blockchain protocol developers. And although Ethereum's public blockchain is open to all, the platform allows variants capable of delivering performance and security at the enterprise level, reports the technical document .

"Ethereum can also easily handle the privacy and confidentiality requirements of a CBDC, through a combination of public and private smart contracts, complemented by cryptographic techniques," says the document.

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