How much do you know about digital currency DCEP and Central Bank?
With the increasing recognition of blockchain technology, it has been promoted to a national strategic position. In a sense, digital currency, the central bank, may act as a "booster" to promote the internationalization of RMB. However, Libra has not been supported by the US government. On the contrary, the founder of Facebook, its largest shareholder, was also questioned by Congress, which led many partners of Libra project to withdraw their funds. It can be seen that Libra has lost its legal compensation at the national level and can only be used locally as a commercial asset.
The new digital currency of the Central Bank will be issued soon. So, what are the outstanding places in digital currency? The following is a detailed interpretation:
0 1. What is the central bank digital currency?
The name of digital currency introduced by the central bank is DCEP, which is the abbreviation of English digital currency electronic payment, meaning digital currency and electronic payment tools. It is a substitute for RMB paper money, and its functions and attributes are exactly the same as those of paper money. Mainly used for retail payment.
How much do you know about digital currency DCEP and Central Bank?
DCEP, like paper money, does not need any bank account. It is enough to have a digital wallet of DCEP on your mobile phone. However, compared with paper money, it has its unique advantages: it is more convenient to pay and carry. With it, you can transfer the DCEP in the digital wallet to another person just by touching two mobile phones together, and you don't even need to connect to the Internet, as long as the mobile phones have electricity.
At the same time, DCEP is very different from paper money. Paper money is anonymous to some extent, and no one knows where individuals spend it, so some evil forces use paper money to launder money. DCEP uses blockchain technology, which is anonymous and traceable. We use it to pay, and every payment will leave a trace. If you don't commit a crime, it can satisfy your anonymity, but if you use it to commit a crime, sorry, big data can track your true identity.
02. What's the difference with WeChat and Alipay?
As can be seen from the above introduction, DCEP is very similar to electronic payment such as WeChat and Alipay. At present, domestic WeChat and Alipay payment are very developed. Why should we use blockchain encryption technology to redevelop such a digital currency?
How much do you know about digital currency DCEP and Central Bank?
First of all, both WeChat and Alipay need to bind bank cards, while DCEP doesn't need them at all. The transfer between users has nothing to do with bank accounts, just like digital currency such as Bitcoin.
Secondly, DCEP has legal effect. When we buy goods offline, we will find that some merchants can use Alipay, but they don't support WeChat. But for DCEP, as long as electronic payment can be used, DCEP must be accepted, just like paper money must be recognized.
Third, when the network is disconnected, for example, in airplanes, basements and remote mountainous areas, WeChat and Alipay cannot complete the payment, and digital currency, the central bank, will not be affected, and offline payment can be realized as long as the mobile phone has electricity. Don't worry about not being able to pay without the network in the future.
Fourthly, DCEP has higher legal status and better security. Wechat and Alipay payments are not settled in the currency of the central bank, but in the deposit currency of commercial banks. Objectively speaking, if they have an accident such as bankruptcy, their rights and interests may not be guaranteed (in fact, it is almost impossible). DCEP is issued by the central bank, which is more secure.
03. Is DCEP the same as Bitcoin?
It can be said to be completely different. Bitcoin, Ethereum, etc. It is truly decentralized and belongs to a super-sovereign currency. Their prices are determined by the market, so they fluctuate greatly. DCEP is issued by the Central Bank. Although the blockchain technology is adopted, the centralized operation mode is adopted, which is the digital monetization of RMB, and the price will be very stable.
How much do you know about digital currency DCEP and Central Bank?
DCEP adopts centralized operation mode, on the one hand, to facilitate supervision, on the other hand, to meet the needs of daily transactions. Bitcoin and other completely decentralized blockchains are limited by technical bottlenecks. At present, the transaction confirmation is very slow. Bitcoin can only handle about 7-8 transactions per second, and Ethereum can only handle 10-20 transactions per second. Last year, Taobao's transaction peak reached 9277 1 transaction per second. Therefore, in order to meet the daily payment of the public, only alliance or private chain technology can be adopted at present.
04. Why does the central bank issue digital currency?
According to the official statement, in the face of the impact of Libra, which is committed to establishing a simple borderless currency, we need to protect our monetary sovereignty and legal tender status so as not to lag behind others. Then, at present, the cost of issuing and keeping banknotes and coins is very high, and the intermediate links in circulation are too complicated and inconvenient to carry, so new substitutes are needed, and digital currency can just solve these problems.
In addition, Long, a doctor of computer science in Tsinghua and an independent researcher, believes that behind the issuance of digital currency by the central bank is the struggle between the central bank and the commercial banking industry internally and the ambition of RMB internationalization externally.
Based on digital currency's convenience and easy global circulation, this is indeed conducive to the internationalization of RMB, but how to understand the "wrestling between the central bank and commercial banking"?
At present, the currencies circulating in the market are mainly cash and bank deposits, and deposits are created by loans from commercial banks. Relevant data show that at present, the cash created by the central bank only accounts for 5% of the currency in circulation, and the bank deposits created by commercial banks account for 95%. Therefore, the main creator of currency in circulation at present is commercial banks.
As we all know, the central bank is an institution that regulates the money supply. If it is not the main body that creates circulating currency, supervision will become complicated and inefficient.
The digital currency issued by the central bank adopts a "two-tier operation" mechanism, that is, DCEP is exchanged by the central bank for commercial banks, and then exchanged by commercial banks for the general public, thus regaining the right to create money, making it easier to manage money and enhancing the central bank's ability to cope with business cycles.
05. How does Volkswagen exchange digital currency, the central bank?
As mentioned above, the central bank adopts a "two-tier operation" mechanism. According to Forbes' previous report, in the initial stage, the central bank will exchange DCEP for Ali, Tencent, ICBC, Bank of China, China Construction Bank, Agricultural Bank of China and UnionPay, and then they will issue it directly to the public. After DCEP is actually issued, we can exchange it directly through WeChat, Alipay and Bank App.
At the same time, the central bank will also reach cooperation with foreign banks in the future, thus pushing DCEP to the world.
Blockchain also has understandable value in today's digital economy. In the future, this world position that creates global hegemony will involve a lot of resources.
This article comes from www.liankexing.com, a chain guest community.