【Exclusive Interview】Unfinished Ambitions after Stepping Down, Engage in a Deep Conversation with the "Cryptocurrency Legislator"

Former legislator and "Crypto Congressman" Jason Hsu, a thought leader in the startup and digital finance sectors, took time out of his busy schedule to engage in an in-depth interview on topics such as central bank digital currencies, digital finance development, and cybersecurity. Don't miss this opportunity to gain insights into the mindset of a legislator!

Leave Professional Questions to Professional Answers

Recently, there have been many regulatory issues in the blockchain industry, startups, and digital asset field. For instance, the rapid development of China's DCEP, the impact after the release of Libra 2.0, relief measures during the pandemic, changes in the post-pandemic era, and widely discussed cybersecurity issues.

To provide readers with more professional perspectives, "Crypto Legislator" Jason Hsu, a thought leader in the startup and digital finance field, and former legislator, conducted an in-depth interview on the recent industry dynamics. Together, they discussed the importance of these issues and the possible future directions of regulatory authorities.

At first sight of Jason Hsu, he greeted us with his signature smile, and I noticed he had lost quite a bit of weight compared to half a year ago. Jason Hsu mentioned that the pressure had significantly reduced after stepping down, allowing him more time for outdoor activities, leading to a relaxed mind and body. Apart from relaxation, Jason Hsu stated that after stepping down, he also had more time to focus on his passion for digital startups and the blockchain industry.

"After all, this defines the important beliefs and values during my four-year term as a legislator."

Next, let's hear how a legislator views these major issues from the perspective of a lawmaker.

Digital Currency｜Next Step in the Trade War is Financial Warfare

China's Digital Currency Electronic Payment (DCEP) has entered the testing phase, and since the release of Facebook's Libra 2.0, regulatory concerns have decreased. These two digital currency projects, representing China and the US, respectively, will impact the future global monetary system. According to Jason Hsu, "The trade war between the US and China may evolve into financial warfare, with the US likely to push for the opening of the Chinese yuan. In order to ensure maximum control over the national currency, China's launch of DCEP is the best response."

Furthermore, the second purpose of China issuing DCEP is to integrate it into the Belt and Road Initiative as a financing tool for neighboring countries. In a way, DCEP can be seen as China's way of expanding its global dominance."

When asked if the Taiwanese government should take corresponding measures, Jason Hsu stated:

"I believe Taiwan should seize the time difference. While China is developing DCEP, Taiwan can also develop a version of DCEP for the New Taiwan Dollar, unifying the payment system through this method."

Jason Hsu further pointed out that the main purpose of the central bank issuing a digital New Taiwan Dollar system is not just to digitize transaction behavior but to provide a foundational structure for commercial banks, third-party payments, and other payment service providers to achieve efficient and low-cost transaction settlement goals. However, despite the many benefits of developing a central bank digital currency, Jason Hsu emphasized that there are still many technical challenges to overcome. "How to achieve double offline payments" is a good example.

Currently, most payment service providers only support "single offline payments (payer online, payee offline)." However, if the government were to replace all paper money with digital versions, the payment system must be able to support "double offline payments," or many transaction activities in society will be affected.

The so-called "double offline payments" mean that when both parties' mobile phones or devices are offline, they can still conduct transactions. Essentially, the payer and payee can exchange messages through Bluetooth or NFC to complete the transaction. However, without additional measures such as real-name authentication or client device pairing, it may lead to issues with system security and the synchronization of online ledgers. Jason Hsu stated:

"There are two solutions proposed by the academic community currently. One is to use devices that support a Trusted Execution Environment (TEE); the other is through a bank client mode bound to real-name mobile phones... From the recent patent applications by the People's Bank of China, it can be seen that they have chosen the standard unified chip, which is the first solution for double offline payments."

National Cybersecurity｜Government Obliged to Deploy Ahead

Cybersecurity is one of the issues that Jason Hsu has been particularly concerned about recently. In early May, CPC Corporation, Taiwan was reportedly hit by a ransomware attack, leading to a complete shutdown of its Jetico and CPC PAY payment systems. Jason Hsu also sharedthis news on Facebook.

Moreover, before the inauguration on May 20th, there was a hacking incident at the Presidential Office. Reports surfaced on the 16th that the Presidential Office was hacked, and the data prepared by the Presidential Office staff was altered and distributed to the media in a malicious manner.

"Honestly, I am not surprised that these two incidents occurred because the country simply does not allocate enough resources and budget for cybersecurity protection."

Besides the need for improvements in legal systems and hardware and software equipment, the cybersecurity literacy of public officials is also a crucial issue that must be addressed. Jason Hsu stated that the government should deploy ahead in cybersecurity and not wait until incidents happen. Many public officials lack crisis awareness in cybersecurity, leading to relatively loose protection in government and public institutions. If the government does not put more effort into this or allocate more budget to address these issues, future applications in Taiwan, such as IoT, end-to-end, or edge computing, will only exacerbate the situation.

Post-Pandemic Economy｜Some Relief Funds Should be Invested in Digital Financial Development

On the other hand, the distribution of relief funds is also a topic of concern during the pandemic. While the US distributed relief funds to all taxpayers through online applications and other digital methods, Taiwan still requires people to queue at public offices or other government agencies to fill out application forms. This approach not only increases the risk of infection for the public but also leads to resource waste and significant intangible costs in society.

Jason Hsu believes that the current and future post-pandemic era is the best time for the government to develop digital finance:

"The government can use a portion of the relief funds for the development of digital finance and then promote the use of points and similar digital currency applications by various small and medium-sized enterprises. When the pandemic becomes the new normal, and everyone realizes the potential of this epidemic prevention breakthrough, the government should utilize this opportunity to implement relief through digital financial means. I believe it will be very effective."

Jason Hsu's Struggle Continues!

In the final part of the interview, Jason Hsu, currently serving as the Secretary-General of the Jade Mountain Technology Association, informed us that apart from emphasizing continued attention to the development of blockchain and digital assets, he will establish the "Digital Assets and Blockchain Technology Promotion Organization" in the second half of 2020. This organization will continue to assist industry development in policy matters and provide recommendations to other legislators on legislative amendments, continuing his unfinished mission as the "Crypto Legislator."