At the US Congressional hearing on October 24th, Facebook’s encryption currency, Libra’s CEO Mark Zuckerberg said that China is about to launch digital currency in a few months. This was one of the most important arguments that Zuckerberg defended Libra at the time. Sure enough, in less than a week, China gave the answer.
Huang Qifan, vice chairman of the China International Economic Exchange Center, once again became the focus of discussions at the domestic and international blockchain industry: People’s Bank of China Probably the world’s first central bank to introduce digital currency.
This is the first time in the world to understand the full picture of the central bank digital currency DCEP.
But the central bank is not trying to compete with Libra, but the long-term planning of the central bank.
DCEP (Digital Currency Electronic Payment) is a new encrypted electronic money system based on blockchain technology. It will replace M0 (RMB circulation) and has the same function as banknotes. Any China Organizations and individuals cannot refuse to receive DCEP. At the same time, DCEP adopts “double offline payment”, both sides of the transaction are offline, even in underground shopping malls without signals, transactions can occur.
The full picture of DCEP is already available. Obviously, China will digitize and internationalize the RMB through DCEP. What is the difference and impact between DCEP and Libra and Bitcoin?
DCEP VS FACEBOOK
DCEP is more like the “digital RMB” issued and settled by the People’s Bank of China. It is legal. Individuals and merchants in China must accept DCEP payments and double offline payments. DCEP borrows the blockchain architecture but does not use it all. Libra is a digital currency system that needs to be traded in a network environment. It is distributed and settled by Libra nodes, but it can only be used in the Libra wallet and its ecosystem. It is not legal. Libra is essentially a coalition chain framework. The stable currency underneath.
DCEP VS Bitcoin
The properties of DCEP and Bitcoin are different. DCEP is a solid legal currency, but it is presented in digital form by means of a blockchain. Bitcoin is a commodity or alternative asset. Deflation is doomed to be unsuitable for currency, and bitcoin’s payment function has been limited so far. The broader application scenario is value storage (digital gold) and speculation
Bitcoin also does not meet the currency interchangeability. Each BTC is different due to different transaction records. The BTC with criminal history related transaction history is not popular. Virgin Bitcoin (virgin) has appeared in the West.
By definition, Bitcoin does not have true anonymity, only has the pseudonym of the transaction. DCEP’s hierarchical and accountable anonymity not only truly conforms to currency interchangeability, but also digitizes the banknotes.
The most important thing is DCEP’s privacy protection mechanism seems to be the most suitable for real-life situations in BlockBeats – protecting the privacy of ordinary users and combating money laundering.
There will be more information about DCEP release soon, and more and more applications related to DCEP. For blockchain technology innovation, we must support it, but also beware of possible risks. All information is subject to the official announcement of the central bank.