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00:00GREAT TO HAVE YOU ON WITH US ON DAYBREAK ASIA. MARK ZUCKERBERG SAYS THIS PROJECT -- THEY SAID THEY HAVE TO GO AHEAD WITH THIS PROJECT BECAUSE OTHERWISE CHINA WILL DO IT IS THAT A LEGITIMATE FEAR? JOSEPH: IT IS LEGITIMATE THAT CHINA WILL DO IT. IT IS NOT LEGITIMATE THAT CHINA WILL DOMINATE THE SPACE. MARK MAY HAVE BEEN A LITTLE OPPORTUNISTIC. THE DIGITAL RMB IS COMING. IT MAY BE DIRECTLY BASED ON BLOCKCHAIN TECHNOLOGY OR IT MAY USE CRYPTOGRAPHIC PRIMITIVES OR PIECES OF BLOCKCHAIN TECHNOLOGY. IT DOES NOT NEED TO BE A DECENTRALIZED PROTOCOL. THEY MIGHT CHOOSE TO HAVE A SOMEWHAT DECENTRALIZED PROTOCOL BEFORE REDUNDANCY -- PROTOCOL FOR REDUNDANCY OR THE ABILITY OF THE SYSTEM. > > IS THERE A NEED FOR STABLE CRYPTOCURRENCY? IS SOMETHING LIKE LIBRA THE ANSWER TO IT? JOSEPH: THERE IS A NEED FOR STABLE CURRENCIES. BITCOIN IS USED AS A DIGITAL GOLD. THE ETHEREUM TOKEN IS A CRYPTO FUEL. IT IS A TOKEN THAT PAYS FOR CAPITATION AND STORAGE ON THE ETHEREUM DECENTRALIZED APPLICATION NETWORK. THOSE TOKENS RISE AND FALL PRODUCING A FAMILY -- FALL PRETTY SIGNIFICANTLY. THERE ARE ABOUT 200 PRICE STABLE TOKENS OR PROJECTS. MOST OF THOSE ARE OPERATING ON ETHEREUM. THEY JUST PROVIDE PRICE STABILITY. THEY ENABLE SOMEONE ON A MUSIC PLATFORM TO PAY A DOLLAR USING THE MAKER DIE COIN. THEY ENABLE PEOPLE TO PRICE THEIR GOODS ON THESE BLOCKCHAIN PLATFORMS IN SOME SORT OF STABLE VALUE. THEY ARE EXTREMELY VALUABLE TO OUR GROWING, EMERGING DIGITAL ECONOMY. > > JOE, YOU OFTEN SAY PRICE DOES NOT REALLY MATTER. IT IS ACTUALLY THE TECHNOLOGY HERE IN THE SPACE. IF WE DID NOT HAVE THOSE SPECULATIVE RUN UPS IN PRICES, WHAT PEOPLE REALLY CARE ABOUT THIS SPACE -- WOULD PEOPLE REALLY CARE ABOUT THE SPACE? JOSEPH: I NEVER SAID THAT PRICE DOESN'T MATTER. WHEN ASKED, I SAID WE NEED LOTS OF PEOPLE WITH DIFFERENT INTERESTS IN OUR ECOSYSTEM. THE VALUE OF THE CRYPTO TOKENS WHEN THEY RISE, THEY DRAW A LOT OF ATTENTION, TECHNOLOGISTS AND ENTREPRENEURS INTO THE SPACE. THAT IS A VERY GOOD THING FOR US. ALSO, HIGHER VALUE OF THE TOKEN BRINGS MORE VALUE INTO THE PROTOCOL. THE MORE VALUE THAT IS IN THE PROTOCOL, THE MORE SECURE THE PROTOCOL IS. > > WHAT ARE THE NEXT STEPS FOR ETHEREAL -- IN SYRIA HIM -- ETHEREUM? JOSEPH: ETHEREUM HAS BEEN WORKING ON TWO OR THREE MAJOR ISSUES. SCALABILITY, INCREASING THE NUMBER OF TRANSACTIONS PER SECOND. THE SECOND IS PRIVATEL -- PRIVACY AND CONFIDENTIALITY. WITH RESPECT TO SCALABILITY, ETHEREUM CAN HANDLE 25 TRANSACTIONS PER SECOND. THERE ARE A NUMBER OF TECHNOLOGIES ALREADY BEING USED WHERE THEY ARE BRINGING HUNDREDS, THOUSANDS AND SOON EVEN MORE TRANSACTIONS THAT LAYER TO THE PLATFORM. SOME OF THESE TECHNOLOGIES ARE USED BY GAMES, PLATFORMS AND OTHER EXCHANGES. THEY CAN PROVIDE NEARLY THE SAME LEVEL OF SECURITY BUT ENABLE MUCH FASTER TRANSACTIONAL THROUGHPUT AND TRADER USER EXPERIENCE. THE OTHER PIECE IS CONFIDENTIALITY AND PRIVACY. THERE ARE SEVERAL BREAKTHROUGHS THAT ARE IN USE RIGHT NOW. ALSO, TECHNIQUES LIKE ZERO KNOWLEDGE STARTS. THEY WILL BRING CONFIDENTIAL TRANSACTIONS. PRINCETON YOUNG AND AZTEC ARE

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There Is an Absolute Need for Stable Cryptocurrencies, Says Ethereum Co-Founder

Joseph Lubin, founder of Consensys and co-founder of Ethereum, discusses the PBOC’s effort to launch a digital version of the yuan and trading and managing digital assets. He speaks on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)

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