Digital Currency ：10 Questions
about China’s DCEP - Part 1
关于中国央行数字货币DCEP的十问－上
Source: OKEX
来源：OKEX
Q1. What is DCEP and how is it different from the existing Chinese yuan?
Answer: Simply put, DCEP is the Chinese yuan banknotes and coins we use every day digitalized.
问题1：什么是中国央行数字货币DCEP，它和现有的人民币元有什么区别？
答：简单来说，央行数字货币DCEP就是数字化后的人民币纸币和硬币。
Q2. Are DCEP and Bitcoin similar things?
Answer: No, they are entirely different things with two distinctive differences:
First, DCEP is 100% state-backed by the government’s reserve fund. In other words, it is central bank’s debts guaranteed by PBOC. So, it is a national sovereign currency. On the other hand, Bitcoin is not backed by any central banks. That’s why there is the huge price fluctuation in its value.
In terms of design, DCEP adopts a two-layered operating system – the PBOC first converts DCEP to banks or other financial institutions, and then these institutions further distribute the digital currency to the public. Bitcoin is issued in a decentralized way called mining, which does not involve any central banks or commercial banks, and it is distributed to the public directly.
问题2：央行数字货币DCEP和比特币相似吗？
答：不，这两者是完全不一样的，有以下两方面显著区别：
首先，央行数字货币DCEP是由央行准备金100％背书担保。换句话说，它是由中国人民银行担保的央行债务。所以，它是一种国家主权货币。与此相反地，比特币并没有得到任何国家央行的背书，这也是比特币之所以价格波动巨大的原因。
其次，央行数字货币DCEP采用双层运行结构－中国人民银行先发行央行数字货币DCEP给银行等金融机构，然后这些金融机构再把数字货币进一步分发到公众手中。与此相反地，比特币是通过去中心化的方式发行的（称为挖矿），比特币的发行过程不涉及任何中央银行或者商业银行，而是直接分发到公众手上。
Q3. Is DCEP just another stablecoin like Libra and USDT?
Answer: No, DCEP is backed and issued by the Chinese government, while Libra and USDT are issued by private institutions and collateralized by the US dollar or other fiat currencies.
From a legal perspective, DCEP is a legal tender, which means when we use DCEP for payment, merchants cannot refuse. On the contrary, Libra and USDT are not legal tender and merchants have every right to say no if we want to pay with them.
问题3：央行数字货币DCEP是否仅仅是另一种类似于Libra和USDT的稳定币？
答：不是。央行数字货币DCEP是由中国政府发行和背书，但是Libra和USDT是由私人机构发行并以美元或其它法币作抵押品。
从法律的角度看，央行数字货币DCEP是一种法定货币。这意味着，当我们使用央行数字货币DCEP去付款时，商家不可以拒绝。与此相反地，Libra和USDT不是法定货币，所以商户有权拒绝我们用Libra和USDT付款。
Q4. Is blockchain technology applied to DCEP?
Answer: It is hard for PBOC to fully apply blockchain technology to DCEP as the existing technology can’t handle the high concurrency that will take place.
DCEP has borrowed some of the concepts in blockchain technology, as seen from its latest disclosed patent, DCEP is integrated with asymmetric cryptography, unspent transaction output (UTXO), and smart contract technologies. However, consensus mechanism, which is the key of public blockchains, is unlikely to be adopted.
问题4：央行数字货币DCEP有应用区块链技术吗？
答：对于中国人民银行来说，完全充分地把区块链技术应用到央行数字货币DCEP上是一件难事，因为现有的区块链技术并不能很好地处理“高并发性”这个需求。央行数字货币DCEP确实借用了区块链技术里的一些概念，从最近披露的专利来看，央行数字货币DCEP整合了“非对称加密”，“未消费交易输出UTXO”和“智能合约”等技术。然而公共区块链的核心技术“共识机制”则不太可能被采用。
Q5. What is the difference between DCEP and the balances in Alipay / WeChat Pay?
Answer: Alipay and WeChat Pay are the most popular mobile payment apps in China. However, DCEP is more than just another virtual wallet balance.
In terms of money supply, DCEP is designed to replace the current Reserve Money (M0), which is cash, while the funds stored in Alipay and WeChat Pay belong to M2, the deposits of non-depository financial institutions. This is to say, DCEP is the new cash.
Besides, the legal status and security level of the central bank digital currency is much higher than the Alipay and WeChat Pay balances. Similar to commercial banks, when these third-party payment companies go bankrupt one day, people have to face the risks of losing their funds. But DCEP holders will never have to deal with this problem.
问题5：央行数字货币DCEP和支付宝／微信的账户余额有什么区别？
答：支付宝和微信支付是中国最热门的两大移动支付软件。但是，央行数字货币DCEP不仅仅是另外一个虚拟钱包：
从货币供应的角度来说，央行数字货币DCEP被设计来取代现有的储备货币M0（即流通中现金），但是支付宝和微信里面的余额属于M2（即广义货币，非存款性金融机构的存款）。也就是说，央行数字货币DCEP是属于新的“现金”。
此外，央行数字货币在法律地位和安全性上，都会比支付宝和微信支付的余额账户高很多。类似于商业银行的破产，当有一天支付宝和微信支付这些第三方支付公司破产时，人们面临着财产损失的风险。但是与此相反，央行数字货币DCEP的持有者不会面临这个风险。
By: Mr. Lin Weidong ( Lecturer )
