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Is ‘’Chinese DCEP’’ Ready to Launch?

By insidetrader | HODL the Universe | 16 Apr 2020

After several years of ‘’trade wars’’ between United States and China, it seems that the situation is slightly becoming normal. The new subtype of coronavirus, COVID-19, may be the main reason behind it. Because every country must save and heal its citizens, so nobody has any power to strike the ‘’rival’s economy’’. In this plateau phase of the trade war, China gained little advantage to overcome the US Dollar as a global currency and to make the RMB new global currency all over the world. It seems impossible with the ‘’fiat’’ one because even though all efforts against US dollar didn’t make any enough success and it becomes unefficient trials of China for years. But there is a chance to make RMB great against USD with the DCEP.


What is DCEP, briefly?

DCEP, Digital Currency Electronic Payment, is the first digital currency which has the legal status on China. With simple words, we can imagine it like USDT-Tether like stablecoin which is backed 1:1 with Chinese fiat RMB, the RenMinBi. But it has not the same properties that other stablecoins have such as being decentralized.


How to get some DCEP?

The Chinese government and the Central Bank announced the distribution details of DCEP. According to that, DCEP will be distributed to all banks which works with/for the Chinese Central Bank. Nobody can get the DCEP currency via external cryptocurrency exchanges which pointed as illegal in China. So at the first stages of distribution, only the banks will be the main receiver of DCEP.



Why is DCEP different than other stablecoins?

As I said, DCEP currency has not the same properties with stablecoins like USDT or TUSD. For example the total supply of USDT or Bitcoin is known but when we check for DCEP there’s no limit! So with this unlimited feature, DCEP can’t replace the real digital currencies.

On the other hand, DCEP has the governance over on it as Bitcoin or Ethereum doesn’t have. So it is not decentralized. Which means that, the Central Bank of China or the government has full control over DCEP. Also they can create unlimited number of DCEP or destroy the amount they want.


And the last but most important difference: there will be no speculation on CDEP, says Mu Chungchun, the head of the People’s Bank of China digital curreny institute. We can understand it in many ways but my opinion is that there will be no difference between fiat RMB and DCEP. It may be useful for crypto traders because we face some fake movements on BTC price which mainly caused by the increase or decrease on USDT price.


How to use DCEP in public?

There is no clear information about this topic but we can collect some inside information on the Internet. It’s said that DCEP will be available on the mobile wallet. And the screenshoot of this wallet is below.


It’s also said that,people can easily send and receive the DCEP currency as normal. And there’s another interesting thing about DCEP: The companies which accepts any types of digital payment methods will HAVE TO ACCEPT DCEP on China. This is like a mandate because if your company doesn’t want to use it, it will be removed from market! This sounds not so well but it may cause huge usage area for DCEP especially in China which has more than 1/7 of the total world population. So DCEP will become one of the most in-use payment system for China. But it’s easy to understand, for the reamining parts of world, it does not seem to be possible.

You can check for some details of the wallet in the related tweet below.

If DCEP become popular on world, I will update this post with explainig all of its features…

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Freelance crypto writer & translator

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