Is There More to the ETH Network Than Meets the Eye?

11:27 am, Mon, 31 May 21

Ethereum is the second-largest cryptocurrency in the market but could it become something more? According to a statement shared by Yao Qian, the Ethereum network is capable of directly running a central bank digital currency (CBDC) on it.

With the investment of more and more interested parties and ETH Whales (as reported recently), the prominence and utility of the crypto asset are anticipated to increase. Ethereum currently stands at $2,418 (at the time of writing), which is a suitable price if people are interested in buying it.

Beginners and experts alike should use a secure exchange to invest in crypto. Therefore, people who are looking to purchase Ethereum should use SwissBorg exchange or Kraken, which are two of the safest crypto exchanges in the market.

What to Know More About ETH’s Utility?

Yao Qian is one of the most prominent people in the cryptocurrency industry. He is also the head of the science and technology supervision bureau at the China Securities Regulatory Commission (CSRC). During the meetings of the 2021 International Finance Forum (IFF), Qian spoke about the possibility of running CBDC directly on the ETH network or the blockchain payment system Diem.

As per the reports, Yao Qian stated:

We can imagine that if the central bank’s digital currency runs directly on blockchain networks such as Ethereum and Diem, then the central bank can use their BaaS services to directly provide the central bank’s digital currency to users without using intermediaries.”

According to Yao Qian, seven aspects need to be considered while researching for and developing a central bank digital currency. The seven aspects laid out by Qian are:

  • Technical route
  • Value attributes
  • Operational architecture
  • Interest accrual
  • Distribution
  • Implementation of smart contracts
  • Regulatory issues

While sharing his views on the development of CBDC, Yao Qian also cautioned that the technology of smart contracts needs to be improved, to ensure the best outcomes.

He also emphasized the importance of compliance with basic anti-money laundering, KYC guidelines and protecting the clients’ privacy and creating an impeccable balance between them all.

What Could This Mean for ETH’s Future?

The utility and importance of Ethereum are well-known by crypto enthusiasts. Carl Icahn, an influential name in the crypto market recently stated that Ethereum is better than Bitcoin, which brought a lot of attention to the popular altcoin.

This also caused numerous investors to put their money in Ethereum, despite the decline seen in the price of the crypto asset.

It can be said that ETH is a popular altcoin with undeniable utility, considering the above facts.

Therefore, people who are interested in buying Ethereum can use secure exchanges such as SwissBorg or Kraken and safely step into the crypto world. People who invest in a digital asset can also consider becoming crypto traders and use ByBit, which is one of the safest exchanges to use.

For people with little experience and time for active trading can also opt for copy-trading and use PrimeXBT Covesting to enjoy the benefits.