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.