What is the relationship between the central bank's digital currency DCEP and BTC?
On April 14, the Agricultural Bank of China conducted an internal test of the wallet for the central bank's digital currency DCEP. Two pictures can prove that this is not a rumor. The screenshot shows that the DCEP wallet will support functions such as digital asset exchange, digital wallet management, digital currency transaction record query, and wallet attachment. It also supports basic functions such as code scanning payment, remittance receipt and payment, and mobile phone chip payment.
The central bank's digital currency, which has always been concerned, has already started internal testing in a blink of an eye. DCEP can be said to be ready to come out. This is - China Speed!
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DCEP positioning and characteristics
In terms of positioning, the central bank's digital currency DCEP is not a simple digitization of banknotes, but to replace banknotes and coins and change the form of the base currency. The digitization of banknotes generally refers to online instead of offline. For example, Alipay and WeChat Pay are both online payments, but both of them need to be bound with a bank card to pay. However, DCEP does not have this limitation, that is to say, when using DCEP for payment, there is no need to bind any bank account.
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The difference between DCEP and digital currency
DCEP adopts 100% reserve payment, which is a liability of the central bank, guaranteed by the credit of the central bank, and belongs to the national sovereign currency. Bitcoin is not guaranteed by any credit, so we can see that the price of Bitcoin fluctuates greatly.
In terms of design details, DCEP adopts a two-tier operating system, that is, the central bank first exchanges digital currency to banks or other operating institutions, and then these institutions exchange it to the public; while Bitcoin adopts decentralized mining The issuance process does not involve the central bank or commercial banks, and it is directly oriented to the public.
Compared with stable coins, DCEP is issued by the government, while USDT is a digital currency issued by private institutions and secured by US dollars or other currencies. From a legal point of view, DCEP has unlimited legal compensation, that is, when we use DCEP for payment, merchants cannot refuse to accept it; while USDT does not have unlimited legal compensation, merchants can refuse to accept it.
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The impact of DCEP on the cryptocurrency market
DCEP is a centralized digital currency endorsed by national credit, which is equivalent to the digitization of RMB. Bitcoin and DECP really have nothing to do with each other. If there is a relationship, then some people with ulterior motives in the currency circle "touch porcelain" DCEP.
Although the issuance of DCEP has no direct impact on the cryptocurrency market, the concept of digital currency will be deeply rooted in the hearts of the people over time. Even if the cryptocurrency market will still be coldly treated by national policies, due to the traceable nature of DCEP, there will be certain To a certain extent, it will increase people's demand for encrypted digital currency.
DCEP is completely different from BTC, ETH and other decentralized digital currencies based on the underlying technology of blockchain. DECP still belongs to the category of legal currency, and has nothing to do with the currency circle. There will be no future now, and there may not be any .
In short, 2020 is a critical year for the development of digital currency. Whether it is the halving of the currency circle, the upcoming Fengshui mining industry, or whether the country will have clear support in the future, it will affect the future development of digital currency. We also hope that digital assets will be rapidly popularized and adopted in 2020 to realize the long-term potential of digital assets. Revolutionize how value is stored and transmitted around the world.
