The central bank legislates to pave the way for DCEP, but DCEP has nothing to do with Bitcoin or blockchain

Introduction: On the evening of October 23, the People's Bank of China issued a notice on soliciting public opinions on the "Law of the People's Republic of China on the People's Bank of China (Draft for Comments)", emphasizing the provision of a legal basis for the issuance of digital currency. Mu Changchun also once again interpreted the hot issues of public concern. From the perspective of the time for amending the law, it will take at least 1-2 years for DCEP to be implemented on a large scale.

Previously, Huo Xiaolu's article proposed that the implementation of DCEP requires the corresponding amendment of the "Law of the People's Bank of China" . This amendment also shows that the progress of DCEP is accelerating. What exactly is DCEP? Is it related to Bitcoin and blockchain? An old article posted on April 30th, welcome to read.

Disclaimer: The author of this article, Huo Xiaolu, has exclusively authorized "Wu Shuo Blockchain" to reprint it. Please contact me for any commercial or non-commercial reprinting. Infringement will be pursued.

There are always people who are impatient, so let’s quickly read the key points first!

TO ordinary people:

Digital paper money has no interest and no investment value. It is similar to Alipay and WeChat Pay in terms of usage. It is okay if you don’t understand it, as it has little impact on your life.

TO Coin Circle People:

It has nothing to do with BTC and other currencies, and it is impossible to exchange them with each other. Libra has compromised, and any more is just YY.

TO third party payment:

Challenges and opportunities coexist. Think about the past development history of mobile payments.

TO ALL:

A new wave of hot-spot harvesters is ready to move, so please be safe, leeks .

DC/EP is a digital currency that the central bank has not yet issued.

The full name is Digital Currency Electronic Payment, DC refers to digital currency, and EP refers to electronic payment.

As early as 2014, the central bank began to study DC/EP. As of April 14 this year, there were rumors that DC/EP was already in the Agricultural Bank of China and planned to be piloted in Shenzhen, Suzhou, Xiong'an, and Chengdu. On the 17th, the Central Bank Digital Currency Research Institute confirmed this.

Note: The picture is from the Internet

In terms of nature, DCEP is a legal tender and a digitized paper currency. It has a 1:1 relationship with the RMB and has no investment value.

I guess it doesn't matter for now.

The central bank’s stance so far is that DC/EP does not have a preset technical route. The subtext is that it does not exclude blockchain technology and will adopt whichever company has the strongest technology.

But everyone in the blockchain industry knows that DC/EP is essentially a "centralized" product, which is contrary to the "decentralization" of blockchain.

From the perspective of application scenarios, whether blockchain technology can be applied to large-scale TO C consumption scenarios is also a big question.

It has nothing to do with it.

DC/EP is a digital currency independently developed by the central bank and is a legal tender. However, BTC and other currencies are at most virtual commodities, and their currency status has never been recognized. The policy direction and official caliber have never changed. BTC and other currencies do not have the same legal status as currencies and cannot and should not be circulated and used as currencies in the market .

From the controllable anonymity of DC/EP, we can see that anti-money laundering and traceability are still the core points. The central bank must master the "big ledger" anyway. BTC and others are almost completely anonymous. So don't think too much. The release of DCEP will not boost the development of BTC and others. It is more of a declaration of sovereignty by the regular army.

At least it’s not a good thing.

On April 16, the Libra 2.0 white paper was released, providing a stablecoin anchored to a single sovereign currency. It is no longer a basket of stablecoins like the 1.0 version.

It can be seen that the ambitions of a year ago have been compromised under the joint suppression of regulators in various countries. Libra 2.0 is now very low-key, and the focus of the entire white paper is on "compliance" to meet regulatory requirements.

Even Libra has compromised. If BTC does not follow the compliance route, it will be difficult to move forward.

Internal testing does not mean that DC/EP will be officially launched. The central bank has not yet officially announced the white paper.

I'm not a prophet, but I have a weather vane .

As a person in the legal field, I can only say that if DC/EP wants to be officially implemented, the prerequisite is that the State Council decides and amends the "Regulations on Renminbi Management".

You may wish to pay attention to the relevant news.

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Wu said blockchain:

Wang Yongli, former vice president of the Bank of China: The central bank's DCEP involves many aspects such as currency form, issuance method, account management, limit control, banking functions, privacy protection, payment carriers, and settlement methods. Its specific applications involve extremely wide areas, and the requirements for clearing speed and security management are very high. The central bank needs to formally issue management regulations and implementation details, and amend relevant laws and regulations such as the People's Bank of China Law and the Renminbi Management Regulations accordingly.

As a new form of RMB, digital cash may not be reflected in the RMB management regulations. Before the launch of DCEP, the management regulations need to be amended accordingly.

The central bank will break the traditional constraints on opening accounts and handling specific business for entities and individuals other than financial institutions and financial departments, which may require corresponding amendments to the "People's Bank of China Law".

The general legislative amendment cycle will go through "first, second and third readings", and it is normal to take 1-2 years, and opinions will be solicited from the industry during revisions or legislation.