How are China Coin and Bitcoin different?
Matthew Graham, CEO of Sino Global Capital, shared a link to a detailed document about China Coin’s architecture.
Starting to get details on DCEP technical architecture @VitalikButerin
— Matthew Graham (@mg0314a) January 30, 2020
Last year, when Facebook announced its plan to launch global stablecoins, China was the first country to announce a state-backed digital currency, now known as China Coin or DCEP. DCEP is expected to launch in 2020, becoming the world’s first state-supported digital asset.
Previously, everyone expected DCEP to be issued in November until it was announced that this was just an unfounded rumor. However, DCEP will be the world’s first state-backed and controlled digital currency, and it continues to attract great interest.
Investors are intently watching any news about it, although it has been reported that DCEP would not be designed for speculation on cryptocurrency exchanges. November has come and gone, but DCEP has not been seen yet, and the revealed reports are speculative. Regardless, it is clear that the project is approaching the market slowly but surely.
Documents published by Baidu have confirmed that DCEP will be the digital yuan, that is, the representative of Chinese fiat currency on the blockchain platform. The document discloses that the goal of DCEP is to replace banknotes in circulation while its nature can be used as a payment instrument.
The document says:
“Unlike third-party payment platforms such as Alipay, DCEP, which aims to replace current banknotes, i.e., M0, while the electronic payment is based on an existing commercial bank account system, the number of M1 and M2 chemistry, and its nature is a payment tool”.
The creators of DCEP revealed that it would be very different from existing cryptocurrencies, such as Bitcoin. It will be issued by the Chinese central bank (PBOC) and will be endorsed in the form of credit. DCEP is going to be supported by yuan.
DCEP will serve the basic functions of both fiat and digital assets, which means spending will be non-repeatable. Moreover, the privacy of the network will be similar to that of traditional banks. However, the asset will have the security and liquidity of a crypto asset that will make it much more efficient.
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