The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

5 Facts You Need to Know About DCEP and China’s Digital Currency

by OKEx Analysis
April 23, 2020
in HodlX
HodlX Guest Post  Submit Your Post
 

“DCEP” has become one of the buzzwords in the blockchain space recently as the trial interface of the digital yuan, offered by the Agricultural Bank of China (ABC), has grabbed a lot of headlines at home and abroad in recent weeks.

While the Facebook-backed Libra project has been downsizing from its original plan as it tries to woo global regulators, China has been scaling up its digital currency project and reportedly released its first DCEP application in Suzhou.

The bold moves from the crypto-unfriendly country seem to not only show that digital currency is becoming a global trend, it’s also solid proof that blockchain technology is going to be a critical part of the global financial system in the future.

[the_ad id="93550"]

The ultimate question is, what is DCEP and why does China want to develop it? Now, sit back and enjoy as we dish out the five top facts that you need to know about this disruptive technology.

What is DCEP?

DCEP, aka digital currency electronic payment, is a central bank digital currency (CBDC) project led by the People’s Bank of China. The plan is part of the response to President Xi Jinping’s push to “seize the opportunity” of blockchain technology. The digital yuan is structured on a two-tier monetary system: (1) a central bank-issued CBDC for commercial banks and (2) a commercial bank-issued CBDC focused on the public.

Apparently, the screenshot that shows the interface from ABC suggested that the trial has been focused on consumer usage.

Why China developed it

China’s DCEP project started way back in 2014 when the PBOC founded a research team specializing in cryptocurrency and established the Research Institute of Digital Currency in 2017.

You may wonder why the Chinese government developed its digital currency when mobile payments are already part of daily life for many Chinese citizens. The Deputy Director of the PBOC’s payments department, Mu Changchun, gave his answer.

“It is to protect our monetary sovereignty and legal currency status. We need to plan for a rainy day.”

Mu also emphasized that DCEP is not designed to copy Libra, and it will be pegged 1:1 to RMB.

The Pros

Compared to physical money, DCEP has its distinctive pros. For the government, a digital yuan could eliminate money printing costs.

For commercial banks, DCEP could facilitate more money transactions with lower costs, increase business innovation while minimizing the risks.

For the public, DCEP could save them from indirect transaction fees for interbank transfers. Domestic and cross-border payments will also involve less friction.

Of course, there may be many more advantages that DCEP can bring, and we should embrace the change as well as the future of currency.

What it means for the cryptocurrency markets

Perhaps that is the biggest concern of the crypto markets. We can imagine that the launch of DCEP will broaden society’s acceptance of blockchain technology and diminish people’s prejudice against it. With a better understanding and real-life applications of this ground-breaking technology, the traditional investment community may become more open to blockchain investments. This potential shift of attitude could bring a positive impact to the existing crypto space. Although there are concerns over the current stablecoin space, however, it seems that it is too early to access how DCEP could affect the stablecoin markets.

What we can expect in terms of CBDC

We can foresee that there will be more countries and regions jumping on the CBDC bandwagon after China, and the US could be one of them. In light of the recent Covid-19 pandemic, some US lawmakers have discussed how a digital dollar could be part of the stimulus package.

The ECB also has been taking a more proactive approach when it comes to the study of having a blockchain-backed EUR.

Meanwhile in Hong Kong, former HKMA chief executive suggested that a digital currency covering the four regions (China, Japan, Korea, and Hong Kong) should be promoted. He believes that this initiative will not only diminish the inconvenience of cross-border payment for enterprises but also tackle the economic stagnation in east Asia.

Conclusion

Now that the official launch of DCEP seems to be just around the corner, we should prepare ourselves for a more digital, convenient and better future.

This post originally appeared on OKEx Academy. Read more.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


About OKEx

OKEx is a world-leading digital asset exchange headquartered in Malta, offering comprehensive digital assets trading services including token trading, futures trading, perpetual swap trading and index tracker to global traders with blockchain technology. Currently, the exchange offers over 400 token and futures trading pairs enabling users to optimize their strategies.

Follow us on Twitter.

Check our latest press material on Press Room.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/imtmphoto/r2dpr

Submit a Press Release

Industry Announcements

  • Bunzz Raises $4.5 Million Seed Round To Expand Its Smart Contract Hub for DApp Development
    January 24, 2023
  • Dogecoin and Shiba Inu Better Watch Out – Floki Just Had Three Big Things Happen for It
    January 24, 2023
  • Crypto Marketing – What Initiatives Will Bring More Value and Users in 2023
    January 23, 2023
  • Make Crypto Payments on BChat Web 3.0 Messenger – BChat Integrates Beldex Wallet
    January 22, 2023
  • KEY3.id Supports Multi-Chain Transaction, Partnership With KuCoin Wallet, CoinHub Wallet and Wallet3 To Launch 2023 Lucky Transaction Campaign With Over 30,000 Participants on Social
    January 20, 2023
  • Deposit EUR/GBP at Zero Percent Fees With Newly Launched SEPA/FPS Channels on Bitget
    January 19, 2023
  • Coinbase Lists Kava, Advancing Ethereum–Cosmos Interoperability
    January 18, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$22,772.10
$22,772.10
4.85%
Ethereum
$1,552.87
$1,552.87
6.23%
Cardano
$0.372728
$0.372728
6.17%
XRP
$0.396067
$0.396067
5.11%
Dogecoin
$0.087194
$0.087194
3.9%

Spotlight

  • Largest Crypto Hedge Fund in the World Says DeFi Will Drive the Next Crypto Bull Market
    January 24, 2023
  • Billionaire Dogecoin Advocate Elon Musk Doubles Down on Offer To Eat Happy Meal on TV if McDonald’s Accepts DOGE
    January 27, 2023
  • Crypto Strategist Who Nailed 2023 Bitcoin Rally Says Real BTC Move Is Yet To Come – Here Are His Targets
    January 23, 2023
  • Top Bloomberg Analyst Says Bitcoin (BTC) Should Add Another Zero To Price – But There’s a Catch
    January 25, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl