Editor's note: The original title was "The mission of DCEP is to replace cash, and the mission of Bitcoin is to become cash-the issuance of DCEP and Libra is a great advantage for decentralized encrypted digital currencies such as Bitcoin"
In China, electronic payment has covered all aspects of life, but we still have some scenarios that require paper money and cash. The pure anonymity of paper money and pure point-to-point transactions are the main reasons we use it.
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Pure anonymity is very important for privacy protection. In many scenarios, consumers may not want to let others know and do not want to leave consumption records. There is not only yellow gambling, but also a lot of legal and reasonable consumption. But just because the consumption concept is different, we need to use cash to avoid a lot of unnecessary trouble.
Pure point-to-point transactions, one-handed payment and one-handed delivery, can completely break down the tracing of big data. Almost all fiat payments on the Internet are used to form user data, and eventually, at some point, they push us advertisements and the like.
Many stores, now paying with WeChat, etc., need to pay attention to the store's public account or applet first. As a result, a lot of messy numbers in mobile phones are hurt by advertisements every day.
The most important reason why electronic payment has become mainstream is its convenience and security. In mainland China, there is no need to bring a wallet at all, a mobile phone solves daily payments. Because of electronic payments, we basically don't see counterfeit money.
However, all electronic payments now require an account and an account registered by the user's real name. But banknotes never need any accounts.
Countries with such achievements are the only country in the world. The central bank's forthcoming digital currency, DCEP, is essentially a substitute for paper money and a digital form of paper money. DCEP is able to complete the payment without requiring a user account. What the user needs is a public and private key pair.
The same is true for Libra. Technically, there is no need for user accounts. Instead, public and private key pairs are used to complete ownership verification and verification.
If the actual development result is that DCEP and Libra will perform real-name authentication for users, this is not a technical requirement, but a government requirement. Technically, DCEP and Libra can be as purely anonymous as banknotes.
Another great achievement of DCEP and Libra is the anti-counterfeiting property. The anti-counterfeiting function of banknotes is very poor, but electronic money is very strong, and electronic money can be perfect without counterfeit money.
You see, DCEP and Libra combine the advantages of both paper money and electronic payment, non-real-name and anti-counterfeiting. Such currencies are destined to occupy the niche of banknotes.
Coupled with the borderless features of DCEP and Libra, it will be able to spread rapidly in China and the United States overseas. The main reason why foreigners, including Americans, have not been able to popularize electronic payment is that the Internet is not sufficiently developed. China's 4G network is the best in the world. The country, including every rural area, has a 4G network. China's optical fiber is also the most popular in the world.
The design of DCEP has a smaller demand on the network, and DCEP can even complete offline payments. This is more conducive to the global promotion of DCEP. I have to say that the consideration of China's DCEP is better than Libra in this step. Libra comes with a smart contract design, which presumably requires a lot more on the network. These advantages of DCEP and Libra will fully replace paper money in the future. Other governments must also launch their own encrypted digital currencies as soon as DCEP and Libra succeed, which will further accelerate the demise of banknotes. Otherwise, currency sovereignty will be lost. But when the cashless cash society comes, can DCEP and Libra really protect our privacy? The answer is definitely not. With the current electronic payment technology, the payment history of users is abused because all payment data is held by commercial institutions, including banks and Alipay. Of course, these commercial organizations need to maximize the use of data to maximize profits.
In the future, DCEP and Libra's payment data will be completely in the hands of the central bank and Facebook. Will they protect users' privacy like paper money? The answer is obviously not. In fact, one of the purposes of DCEP is to strengthen the supervision of banknotes. As a commercial company, Facebook will naturally make the most of users' payment data like Alipay.
Another feature of paper money that DCEP and Libra cannot do is pure point-to-point payment. Paper money can truly cut all the payment chains and will not form a historical payment record.
In the future, when DCEP and Libra become popular, who will protect our privacy when the cashless cash society comes. Especially for those business activities that do not conform to public morals, what will be paid for?
The best answer I can find now is: Bitcoin.
The more accurate answer is decentralized electronic encrypted digital currencies based on blockchain technology such as Bitcoin.
Let's revisit the title of the Bitcoin white paper: Bitcoin: A Peer-to-Peer Electronic Cash System.
Decentralized electronic encrypted digital currency will replace paper cash in the future paperless cash society and become the main payment method to protect our privacy. The entire electronic cryptocurrency ecosystem will benefit from the issuance of DCEP and Libra. The one that benefits the most is the one that can truly achieve the ideal of the Bitcoin white paper, a peer-to-peer electronic cash system.
DCEP's mission is to replace cash, and Bitcoin's mission is to become cash.
DCEP replaces Cash, Bitcoin is Cash.