JUST IN: Chinese Central Bank to Launch Digital Currency Called "DCEP"

[X-ray]

whereas before the Chinese government banned the use of bitcoin. but now it will instead make its own crypo currency. maybe China has realized that cryptocurrency and blockchain are new breakthroughs in the financial system and technology. and many benefits to be gained when we can apply blockchain and crypto technology well. we can reduce the use of fiat money. and in my opinion the presence of DCEP coins is also to rival facebook libra coins. because both are included in the stable coin. and I don't think the presence of this DCEP coin will have an impact on the price of bitcoin.

Stablecoin is like a money generator meanwhile bitcoin is an uncontrollable currency and that's bad for the government more specifically a more restrictive government. Even facebook has seen the potential behind any stablecoin and it is to be expected if China is trying to compete in that field, with the (might be coming) cancellation of Libra due to the harsh government backlash China might take up huge portion of the overall market share for its own DCEP if released internationally otherwise it'll only be available for Chinese people and maybe to fulfil the desire of chinese people towards cryptos.

[tambok]

whereas before the Chinese government banned the use of bitcoin. but now it will instead make its own crypo currency. maybe China has realized that cryptocurrency and blockchain are new breakthroughs in the financial system and technology. and many benefits to be gained when we can apply blockchain and crypto technology well. we can reduce the use of fiat money. and in my opinion the presence of DCEP coins is also to rival facebook libra coins. because both are included in the stable coin. and I don't think the presence of this DCEP coin will have an impact on the price of bitcoin.

Stablecoin is like a money generator meanwhile bitcoin is an uncontrollable currency and that's bad for the government more specifically a more restrictive government. Even facebook has seen the potential behind any stablecoin and it is to be expected if China is trying to compete in that field, with the (might be coming) cancellation of Libra due to the harsh government backlash China might take up huge portion of the overall market share for its own DCEP if released internationally otherwise it'll only be available for Chinese people and maybe to fulfil the desire of chinese people towards cryptos.

That's why they can't regulate Bitcoin as they will have no control of it, which is on our part is a good thing, as we don't want to be controlled by someone, the disadvantage is that you will lose your fund if you don't know how to handle it and no once can protect your investment.

China was for sure have seen the advantage of blockchain, they just don't want their country to be involved in Bitcoin as they didn't develop it, they want to benefit with crypto at their own interest so they made their own coin.

[Mometaskers]

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I think that's pretty much the plan. Completely phase out paper money for this crypto. Together with the extensive surveillance and social credit, the government gains near complete control of people.

Exactly, hence all the "blockchain not Bitcoin" language. DCEP will give them much more control over their currency than traditional CNY ever could. That includes cutting off access to crypto exchanges and other capital control measures.......

An authoritarian's wet dream. Even currently they already have a lot of restrictions when it comes to use of CNY with plenty of regulations concerning withdrawals. This would make control of personal finance pretty much total. I can't see why some people see this as a positive development.

[wozzek23]

I don't think they are trying to replace the fiat system, that would not make any sense if they do it. And I thought they were against cryptocurrencies? Maybe they did all that because they know that without banning every other crypto there will be no chance for their state backed crypto to gain people's interest. But, with what they have done they will be able to get people's interest to the new cryptocurrency they have developed.

As for replacing fiat, that's not going to work. Some people make cryptocurrency seem like it's the solution to the economic problems we are having, while that's not the truth. If the world should switch to crypto i don't see any difference between what will happen to it than fiat, it's still going to face the same problems and maybe worse. It's best that we continue to make use of fiat. Everyone still have their own opinion.

[Memminger]

I don't think they are trying to replace the fiat system, that would not make any sense if they do it. And I thought they were against cryptocurrencies? Maybe they did all that because they know that without banning every other crypto there will be no chance for their state backed crypto to gain people's interest. But, with what they have done they will be able to get people's interest to the new cryptocurrency they have developed.

As for replacing fiat, that's not going to work. Some people make cryptocurrency seem like it's the solution to the economic problems we are having, while that's not the truth. If the world should switch to crypto i don't see any difference between what will happen to it than fiat, it's still going to face the same problems and maybe worse. It's best that we continue to make use of fiat. Everyone still have their own opinion.

There’s no mention about eliminating fiat in the OP and I doubt that they would do that since it has its own convenient usage. I think it is much wiser to have both fiat and the cryptocurrency as part of the commerce of the Chinese people or other countries as well who are planning to do the same. It has its own respective conveniences in using fiat and cryptocurrencies.

I think that the Chinese government are still testing the waters after banning Bitcoin before launching their own cryptocurrency.