- DCEP is China's new cryptocurrency.
- In comparison to Bitcoin, DCEP will not allow any privacy for users and zero anonymity.
- China's central bank will control every transaction.
China is rolling out its own state owned digital cryptocurrency DCEP (which stands for the /electronic payment system). It is otherwise known as China’s central bank digital currency project. The digital yuan is expected to function more like a counterpart to paper money than a cryptocurrency. Unlike Bitcoin, Etherium and other cryptocurrencies, the DCEP value is expected to remain stable. Of course, it is China, therefore there would be no chance of privacy and China’s Central Bank will be able to monitor every transaction.
The DCEP project took close to six years to complete. The payment system became available to customers on a “white list” of the Agricultural Bank of China in four pilot districts of Shenzhen, Xionggang, Chengdu and Suzhou. The white list and social scoring system achieved full implementation this year. A citizen in China can be on the white list due to their good behavior.
However, it is easy to end up on the blacklist. Anything from not paying taxes, to your neighbors complaining, can land you on the black list. Once you’re blacklisted, you can’t buy plane tickets, you can’t use public transit, and your internet speed will be decreased.
China has one of the most draconian forms of internet censorship. It is dubbed the “Great Firewall of China.” The only sources allowed on the intranet are approved by the government. The major system used for getting news in China is WeChat which is also used for social networking, and making payments. Now the digital cryptocurrency project is moonlighting through WeChat. The lucky ones on the white list will be able to use it.
According to the plan of the Chinese government, the release of cryptocurrency will fully transfer the yuan to the digital plane and displace the dollar from the market of electronic payments, which will prevent the further dominance of US currency. It is wishful thinking and propaganda. The roll out also coincides with everyone in the West and around the globe dealing with the coronavirus pandemic, which originated in China and spread thanks to China too.
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Immediately China stepped up its propaganda within the country, degrading and mocking Americans. Matthew Graham of Sino Global Capital immediately got on WeCha and Twitter to make unsavory statements about the US and its battle with coronavirus and how China is forging ahead with its digital currency project.
Graham is educated in the US and an American national residing in China who clearly favors Chinese politics and projects an anti-US sentiment. He is very close to holding treasonous views against the US.
The DCEP app touted online seems to still be in the testing phase. It is highly likely it will have an overlap with WeChat and be integrated at some point. Digital payments are very popular in China, as it allows the Chinese government to track and control every transaction a person makes. It also allows full control of the person’s finances and interactions.
It is clear China will continue its anti-American rhetoric, sometimes using US nationals who are willing to sell out their own nation. Even during the coronavirus pandemic China and Russia want to undermine the US and meddle any way they can.