Yao Qian: The central bank can use blockchain to integrate distributed operations to better achieve centralized management and control of CBDC

According to the first financial news, Yao Qian, former director of the Digital Currency Research Institute of the People's Bank of China and director of the Science and Technology Supervision Bureau of the CSRC, issued a "Blockchain and Central Bank Digital Currency." The article points out that the central bank's digital currency experiments in most countries are based on blockchain technology. But to this day, it is still controversial whether CBDC adopts the blockchain technology. A typical view is that the decentralization of the blockchain conflicts with the centralized management of the central bank. Therefore, it is not recommended that the CBDC adopt this technology.

Yao Qian believes that although the technical characteristics of the blockchain are not dependent on the central institution, it does not mean that it cannot be incorporated into the existing central institution's system. As long as the rational design is adopted, the central bank can just use the blockchain to implement distributed operations. Effective integration, to better achieve centralized control of CBDC, there is no necessary conflict between the two.