What is the difference between the central bank digital currency DCEP and Alipay, WeChat and Bitcoin?

Let me talk about what Bitcoin does?

According to the previously mentioned asymmetric cryptography and one-way hash function, plus the economic structure, there is a basic form of bitcoin. And this basic form can achieve the transmission of value, and the Internet does the transmission of information. The more straightforward explanation of the transmission of value is digital gold or digital banknotes.

Much like you sold me a price, the price is 20 yuan, I will give you 100 yuan, you will change to give me 80 yuan a logic, bitcoin transfer is very similar to this, today is not a UTXO model, pay attention to paper Banknotes digitize this aspect.

What is DCEP doing?

DCEP (Digital Currency Electronic Payment), the term is divided separately, DC refers to digital currency, and EP refers to electronic payment. Together, as the name suggests.

DCEP started to set up an organization for research in China in 2014. China's Alipay and WeChat payment have met most of the daily needs, and DCEP has not jumped out to talk too much. However, when Libra's white paper came out, it did not have any new ideas in technology and mode. DCEP said that this model has long been considered, and it is very likely. Note that I mean no new ideas, not bad or influential. In fact, Libra or DCEP is likely to have a great impact on the future world.

The basic principle of bitcoin or blockchain is to convey value. Then, using this property, the central bank digital currency can be issued. This currency is like a banknote (M0).

What are the characteristics of real banknotes?

1, relatively anonymous, not easy to track;

2, do not need bank account opening, directly holding money, anyone can buy things;

3, the number is large, it is not easy to carry and count, for example, I am carrying 10 million to send you over, too heavy;

4, there are zero, buy a popsicle can find change;

5, made of paper.

DCEP is in line with the above characteristics and is a digital banknote . Convenient to carry, safe, anonymous, no need to open an account with a smartphone can basically be used.

So, can DCEP be anonymous? Of course you can – if DCEP wants to. However, he does not want to, nor will he think. In the future, it may be a small amount, such as less than 30,500,000. It may not require an ID card and a "wallet address" binding. Once the amount is large, it will still be bound. It is normal for this software to have monitoring measures on the phone. This is also to do the "anti-money laundering" function.

What is the difference between DCEP and Bitcoin?

Bitcoin is a decentralized monetary system, and all values ​​and prices come from consensus. The DCEP is issued by the National Central Bank. Every dollar is endorsed by the central bank. Your DCEP can be used, and the domestic party cannot refuse to accept the DCEP. Just like you go shopping, as long as the banknotes are intact, the other party can't say "I don't accept RMB banknotes". I can only say, "I'm sorry, I can't find this money here. You can't use Alipay or WeChat. ?"

DCEP is a legal currency, and it is a type of money that is used today, and Bitcoin is recognized as a commodity in many countries. It is ridiculous to say that buying and selling goods is subject to tax. Bitcoin is a commodity. A collectible is a stored value tool, which is not like the currency used daily. Different from DCEP, it is born with money, and the central bank issues it.

What is the difference between DCEP and Alipay WeChat?

First, think about a question, Alipay or WeChat payment is the digitization of banknotes?

From the point of view of the use of functionality, yes , now I have to go to the supermarket to buy things, take out the Alipay direct payment, or some places have already paid for the face, directly from my Alipay account or Alipay bound bank account Money can be.

In terms of source and category, not . Because banknotes are issued by the central bank, electronic wallets such as Alipay are deposited in commercial banks. You can understand the concepts of M0, M1, M2, 3, 4, and 5, which are briefly listed as follows:

In 2001, the People's Bank of China revised the statistical caliber of money supply. The current division of monetary level in China is:

M0 = cash in circulation

Narrow currency (M1) = M0 + unit demand deposits that can be paid by check

Broad money (M2) = M1 + resident savings deposit + unit time deposit + unit other deposit + securities company customer deposit

In addition, there are M3=M2+ financial bonds + commercial papers + large transferable time deposit certificates;

M refers to money supply, money supply, this definition comes out of economics, and the details of different countries are different. You can see that Alipay and WeChat payment belong to the field of M1 or M2. What DCEP does is M0.

Second, the settlement agencies are different and the security is different;

Alipay and WeChat payments are settled in commercial bank deposit currency, and DCEP is settled in central bank currency.

In fact, many people have misunderstood the term of the central bank. Here, the central bank has only one: The People's Bank Of China (PBOC). Commercial banks are not stable enough. If the commercial bank operates in a bankruptcy, then the "money" in Alipay becomes the "bond" of the commercial company. The assets of the company are bankrupted and liquidated. After calculating the real money, the ratio of "bonds" is calculated. Give you.

Third, Alipay WeChat is an Internet payment, and DCEP can achieve dual offline payment.

It is the place where there is no network, Alipay micro credit is not enough, DCEP is still OK, this is not important for many people. In fact, when shopping in small supermarkets in many places, when the code is paid in the underground parking lot, the signal is very It is anxious that this small demand is very important.

Fourth, the purpose of Alipay WeChat is mobile payment. The purpose of DCEP is to control the status of legal currency and save the cost of issuance.

The above is the basic introduction of DCEP, and the similarities and differences between DCEP and Alipay WeChat Bitcoin. Through these comparisons, we can better understand DCEP.