[2021-08-02] China's Digital Yuan vs Bitcoin

[zasad@]

China's Digital Yuan vs Bitcoin
China has the most advanced central bank digital currency project of all major economies. How does its digital yuan differ from Bitcoin?
https://decrypt.co/77464/chinas-digital-yuan-vs-bitcoin
"In brief
Of the world's major economies, China is closest to creating a fully-fledged central bank digital currency with its digital yuan.
Like Bitcoin, the digital yuan facilitates digital peer-to-peer payment.
However, it differs in that it is controlled by a central authority rather than relying on a decentralized ledger."

[NotFuzzyWarm]

Well duh...
The same will apply to any digital currency created by a government...
Even Fiat has "digital peer-to-peer payment" It's called bank transfers or credit cards.

[SFR10]

Interesting article but it failed to mention with Digital Yuan, there's a limit in regards to how much you could have in your wallet ^{[back in June, that was one of its main objectives (not sure if that has changed)]}.

also known as the e-RMB or the Digital Currency, Electronic Payment (DCEP).

I'm curious to know why would they give two names to Digital Yuan?
^{- When I googled "DCEP", it didn't appear to be a general term.}

[KevinRosa]

The Chinese digital renminbi DECP is fully owned and controlled by the Chinese government, endorsed by China Credit, and legal tender with legal solvency.

Both Chinese digital renminbi and Bitcoin have blockchain technology, but there is a fundamental difference.Digital renminbi is a legal currency, which is equivalent to legal tender.Bitcoin is a virtual asset, which is an influence currency generated by technology and consensus.

Bitcoin is also expanding in the field of reserves, weakening the status of the U.S. dollar and the euro reserve, prompting the pressure of de-internationalization of the currencies of some sovereign countries, and the awareness of Bitcoin as a foreign exchange reserve asset has been imperceptibly.

I am looking forward to good news about Bitcoin, the future of Bitcoin can be expected

[Woodie]

A centralized cryptocurrency can never be as popular as bitcoin is today,  and its too big of a coin to be compared to it.
Afaik the Chinese government squeezed out bitcoin miners out of China not because of the carbon emissions but they are trying to get sympathy for it government controlled coin so that people turn to it and not bitcoin. Btw cryptocurrencies exist in such a way that they operate without boarders, how will Chinas Digital Yuan the operate.

[bbc.reporter]

Well duh...
The same will apply to any digital currency created by a government...
Even Fiat has "digital peer-to-peer payment" It's called bank transfers or credit cards.

Also, what does a central bank issued digital currency do? Can we begin using it openly and without regulations similar to bitcoin and other cryptocoins? I reckon the article should be about China’s digital yuan vs. Ripple XRP hehehe.

[LeGaulois]

@bbc.reporter

I would say yes, more or less, when I think about it. Look at 2021 compared to let's say 5 years ago. Bitcoin is on the road to be regulated across a lot of countries, in almost (again, more or less) the way traditional currencies or assets are.

See what I mean.
Indirectly we're "suffering" from regulations and laws. I exaggerate a bit but for me, these are constraints and not advantages for the crypto industry. Exchange platforms regulations, taxes laws for citizens, the KYC bullshit (even from some shops), licenses here and there for this and that. What else? So many things.
There is most of the time always a point in which there is something against the 'Bitcoin's ideology'.

Sure, there is always a way to go beyond that, but the ecosystem is still small on that side. I'm beginning to think that as the years go by, the 'Bitcoin dream' is just a utopia. if someone would have said to me years ago that Bitcoin will have laws and all that crap, I would have simply replied: LOL.

As for the digital currencies backed by the governments and central banks. I do hope with time people make the difference between DC and cryptocurrencies since I consider both different. Perhaps they both use blockchain tech and cryptography principles, but besides this point everything is different.

[dansus021]

the big difference will be centralized vs decentralized , and the popularity

china always want to be number 1 in all sector technology, manufacturing etc. and also blockchain not just blockchain in fact (*china have own search engine ) and if you try to deploy vps or server in china you need to do KYC and some regulatory to complete

digital yuan maybe the first and we know blockchain tech can do anything

[bryant.coleman]

This is really funny. The CCP guys want to live in their dreamland and don't want to face the reality. Anyone remember the big push to make CNY the global trade currency two decades ago? Back then it failed, because CNY was regarded as the most manipulated one among the dozens of fiat currencies. And now they want to replace BTC with e-CNY, similar to how they attempted to replace USD with CNY two decades ago. Why can't these guys come in to terms with the truth? No one wants to do anything with their crappy national currency. Even US Dollar looks priceless when compared with the CNY. 

[davis196]

This is really funny. The CCP guys want to live in their dreamland and don't want to face the reality. Anyone remember the big push to make CNY the global trade currency two decades ago? Back then it failed, because CNY was regarded as the most manipulated one among the dozens of fiat currencies. And now they want to replace BTC with e-CNY, similar to how they attempted to replace USD with CNY two decades ago. Why can't these guys come in to terms with the truth? No one wants to do anything with their crappy national currency. Even US Dollar looks priceless when compared with the CNY. 

1.Replacing Bitcoin with digital yuan isn't the main goal of the People's Bank of China.
The main goals are fighting tax evasion,the "grey economy" inside China and the export of capitals outside China.Bitcoin isn't even in the Top 10 list of goals.
2.The "crappy national currency" as you said,is artificially undervalued,so the Chinese export will be cheaper and more desirable in western countries.The Chinese communists don't want the yuan to become a free market currency.

[bbc.reporter]

@bbc.reporter

I would say yes, more or less, when I think about it. Look at 2021 compared to let's say 5 years ago. Bitcoin is on the road to be regulated across a lot of countries, in almost (again, more or less) the way traditional currencies or assets are.

See what I mean.
Indirectly we're "suffering" from regulations and laws. I exaggerate a bit but for me, these are constraints and not advantages for the crypto industry. Exchange platforms regulations, taxes laws for citizens, the KYC bullshit (even from some shops), licenses here and there for this and that. What else? So many things.
There is most of the time always a point in which there is something against the 'Bitcoin's ideology'.

Sure, there is always a way to go beyond that, but the ecosystem is still small on that side. I'm beginning to think that as the years go by, the 'Bitcoin dream' is just a utopia. if someone would have said to me years ago that Bitcoin will have laws and all that crap, I would have simply replied: LOL.

As for the digital currencies backed by the governments and central banks. I do hope with time people make the difference between DC and cryptocurrencies since I consider both different. Perhaps they both use blockchain tech and cryptography principles, but besides this point everything is different.

However, what problems would a CBDC solve? Can it replace physical currency? I reckon this would be difficult. Would it improve efficiency? There are efforts to improve efficiency already without CBDC. Will CBDC be an innovation for payments? No, there are also technologies created for that. Also, I am afraid the government will require KYC for CBDC to monitor you.

[Kong Hey Pakboy]

Well duh...
The same will apply to any digital currency created by a government...
Even Fiat has "digital peer-to-peer payment" It's called bank transfers or credit cards.

If it's pure fiat though, it's not tracked by the government, that's why they do it in the movies when they're on the run, all cash no cards because the only way to track you with fiat is if they know the serial number of the money or something like that.

[electronicash]

@bbc.reporter

I would say yes, more or less, when I think about it. Look at 2021 compared to let's say 5 years ago. Bitcoin is on the road to be regulated across a lot of countries, in almost (again, more or less) the way traditional currencies or assets are.

See what I mean.
Indirectly we're "suffering" from regulations and laws. I exaggerate a bit but for me, these are constraints and not advantages for the crypto industry. Exchange platforms regulations, taxes laws for citizens, the KYC bullshit (even from some shops), licenses here and there for this and that. What else? So many things.
There is most of the time always a point in which there is something against the 'Bitcoin's ideology'.

Sure, there is always a way to go beyond that, but the ecosystem is still small on that side. I'm beginning to think that as the years go by, the 'Bitcoin dream' is just a utopia. if someone would have said to me years ago that Bitcoin will have laws and all that crap, I would have simply replied: LOL.

As for the digital currencies backed by the governments and central banks. I do hope with time people make the difference between DC and cryptocurrencies since I consider both different. Perhaps they both use blockchain tech and cryptography principles, but besides this point everything is different.

However, what problems would a CBDC solve? Can it replace physical currency? I reckon this would be difficult. Would it improve efficiency? There are efforts to improve efficiency already without CBDC. Will CBDC be an innovation for payments? No, there are also technologies created for that. Also, I am afraid the government will require KYC for CBDC to monitor you.

the Chinese will do whatever they will do. its bullshiit as we may think. you can say it's not an innovation but it certainly has control of what their government can/would do which is more important to the CCP than having a decentralized currency.

what you have to keep in mind is that it's JUST for them.
for the countries going to make transactions to the Chinese government will have to comply with their rules and this is also what will happen to them if the Chinese will make transactions to Japan or the US, the chinese government will have to comply with the US rules. sadly, they do have the advantage because it's a manufacturing country which most countries may have to comply with their rules.

[Renampun]

A centralized cryptocurrency can never be as popular as bitcoin is today,  and its too big of a coin to be compared to it.
Afaik the Chinese government squeezed out bitcoin miners out of China not because of the carbon emissions but they are trying to get sympathy for it government controlled coin so that people turn to it and not bitcoin. Btw cryptocurrencies exist in such a way that they operate without boarders, how will Chinas Digital Yuan the operate.

this is the reality, they get rid of miners from china because they want to make the digital yuan strong there...

when Elon tweeted about bitcoin and environmental issues, China also heated it up to get rid of the miners in his country easily. bitcoin never harms the environment, what destroys the environment is obviously factories and oil vehicles.

[Oceat]

A centralized cryptocurrency can never be as popular as bitcoin is today,  and its too big of a coin to be compared to it.
Afaik the Chinese government squeezed out bitcoin miners out of China not because of the carbon emissions but they are trying to get sympathy for it government controlled coin so that people turn to it and not bitcoin. Btw cryptocurrencies exist in such a way that they operate without boarders, how will Chinas Digital Yuan the operate.

this is the reality, they get rid of miners from china because they want to make the digital yuan strong there...

when Elon tweeted about bitcoin and environmental issues, China also heated it up to get rid of the miners in his country easily. bitcoin never harms the environment, what destroys the environment is obviously factories and oil vehicles.

No matter what their reason it was obviously a centralized thing that they always do. They don't appreciate the outside technology if it's not profitable for them or cannot be controlled such as Bitcoin. And miners didn't actually do some damage but rather the factories but I think their main issue is the losing of enough power to light up the city because miners are consuming a lot of energy that's why their government want them to stop it and obviously they already know they will not stop hence they will continue it but in another country.

And the Chinese digital Yuan is kind of a replacement for them of Bitcoin since they don't really want something that they can't control inside of their country.

[bbc.reporter]

@bbc.reporter

I would say yes, more or less, when I think about it. Look at 2021 compared to let's say 5 years ago. Bitcoin is on the road to be regulated across a lot of countries, in almost (again, more or less) the way traditional currencies or assets are.

See what I mean.
Indirectly we're "suffering" from regulations and laws. I exaggerate a bit but for me, these are constraints and not advantages for the crypto industry. Exchange platforms regulations, taxes laws for citizens, the KYC bullshit (even from some shops), licenses here and there for this and that. What else? So many things.
There is most of the time always a point in which there is something against the 'Bitcoin's ideology'.

Sure, there is always a way to go beyond that, but the ecosystem is still small on that side. I'm beginning to think that as the years go by, the 'Bitcoin dream' is just a utopia. if someone would have said to me years ago that Bitcoin will have laws and all that crap, I would have simply replied: LOL.

As for the digital currencies backed by the governments and central banks. I do hope with time people make the difference between DC and cryptocurrencies since I consider both different. Perhaps they both use blockchain tech and cryptography principles, but besides this point everything is different.

However, what problems would a CBDC solve? Can it replace physical currency? I reckon this would be difficult. Would it improve efficiency? There are efforts to improve efficiency already without CBDC. Will CBDC be an innovation for payments? No, there are also technologies created for that. Also, I am afraid the government will require KYC for CBDC to monitor you.

the Chinese will do whatever they will do. its bullshiit as we may think. you can say it's not an innovation but it certainly has control of what their government can/would do which is more important to the CCP than having a decentralized currency.

what you have to keep in mind is that it's JUST for them.
for the countries going to make transactions to the Chinese government will have to comply with their rules and this is also what will happen to them if the Chinese will make transactions to Japan or the US, the chinese government will have to comply with the US rules. sadly, they do have the advantage because it's a manufacturing country which most countries may have to comply with their rules.

Agreed, it might be just for them. However, if it does not solve a problem, if it cannot replace physical currency and if does not make payments more efficient than the present payment processors then what it might do is disrupt what is already good by attempting to replace it with something that does bring anything new to the table. I reckon it would be more harmful than helpful. Who will use it?

[cr1776]

China's Digital Yuan vs Bitcoin
China has the most advanced central bank digital currency project of all major economies. How does its digital yuan differ from Bitcoin?
https://decrypt.co/77464/chinas-digital-yuan-vs-bitcoin
"In brief
Of the world's major economies, China is closest to creating a fully-fledged central bank digital currency with its digital yuan.
Like Bitcoin, the digital yuan facilitates digital peer-to-peer payment.
However, it differs in that it is controlled by a central authority rather than relying on a decentralized ledger."

The difference is the difference between gold and pyrite.

Of course some people will be fooled because the CCP doesn't like people to be free and so controls money, speech and everything else.

[cr1776]

This is really funny. The CCP guys want to live in their dreamland and don't want to face the reality. Anyone remember the big push to make CNY the global trade currency two decades ago? Back then it failed, because CNY was regarded as the most manipulated one among the dozens of fiat currencies. And now they want to replace BTC with e-CNY, similar to how they attempted to replace USD with CNY two decades ago. Why can't these guys come in to terms with the truth? No one wants to do anything with their crappy national currency. Even US Dollar looks priceless when compared with the CNY. 

1.Replacing Bitcoin with digital yuan isn't the main goal of the People's Bank of China.
The main goals are fighting tax evasion,the "grey economy" inside China and the export of capitals outside China.Bitcoin isn't even in the Top 10 list of goals.
2.The "crappy national currency" as you said,is artificially undervalued,so the Chinese export will be cheaper and more desirable in western countries.The Chinese communists don't want the yuan to become a free market currency.

The main goal is controlling the people of China and Hong Kong that means capital controls, monetary controls etc.

[electronicash]

@bbc.reporter

I would say yes, more or less, when I think about it. Look at 2021 compared to let's say 5 years ago. Bitcoin is on the road to be regulated across a lot of countries, in almost (again, more or less) the way traditional currencies or assets are.

See what I mean.
Indirectly we're "suffering" from regulations and laws. I exaggerate a bit but for me, these are constraints and not advantages for the crypto industry. Exchange platforms regulations, taxes laws for citizens, the KYC bullshit (even from some shops), licenses here and there for this and that. What else? So many things.
There is most of the time always a point in which there is something against the 'Bitcoin's ideology'.

Sure, there is always a way to go beyond that, but the ecosystem is still small on that side. I'm beginning to think that as the years go by, the 'Bitcoin dream' is just a utopia. if someone would have said to me years ago that Bitcoin will have laws and all that crap, I would have simply replied: LOL.

As for the digital currencies backed by the governments and central banks. I do hope with time people make the difference between DC and cryptocurrencies since I consider both different. Perhaps they both use blockchain tech and cryptography principles, but besides this point everything is different.

However, what problems would a CBDC solve? Can it replace physical currency? I reckon this would be difficult. Would it improve efficiency? There are efforts to improve efficiency already without CBDC. Will CBDC be an innovation for payments? No, there are also technologies created for that. Also, I am afraid the government will require KYC for CBDC to monitor you.

the Chinese will do whatever they will do. its bullshiit as we may think. you can say it's not an innovation but it certainly has control of what their government can/would do which is more important to the CCP than having a decentralized currency.

what you have to keep in mind is that it's JUST for them.
for the countries going to make transactions to the Chinese government will have to comply with their rules and this is also what will happen to them if the Chinese will make transactions to Japan or the US, the chinese government will have to comply with the US rules. sadly, they do have the advantage because it's a manufacturing country which most countries may have to comply with their rules.

Agreed, it might be just for them. However, if it does not solve a problem, if it cannot replace physical currency and if does not make payments more efficient than the present payment processors then what it might do is disrupt what is already good by attempting to replace it with something that does bring anything new to the table. I reckon it would be more harmful than helpful. Who will use it?

the only way to understand is that the country strategized to make them look as if it's a tech innovation-friendly country but it's still a communist country to the core. whether the digital yuan makes it convenient or not for the people. it is convenient for the CCP to survey their people. its monitoring their people, it is what is used for. who knows their phone has ears and eyes on it like what was reported. Apple has this technology as well, to listen and hear through the phones.

actually, Alipay and WeChat are already used widely in China long before this digital yuan. even the vegetable vendors are already using these two. this CBDC is just an extra payment method for them. privacy concern Chinese is probably afraid to use DCEP as well.

[bbc.reporter]

actually, Alipay and WeChat are already used widely in China long before this digital yuan. even the vegetable vendors are already using these two. this CBDC is just an extra payment method for them. privacy concern Chinese is probably afraid to use DCEP as well.

That was the point and it is not only about China, it is an argument against CBDC’s deployment in America and Europe also. It would be useless and a waste of tax payer’s money. However, I hope that they develop and deploy it then cancel it hehehe.