Huang Qifan, vice chairman of CCIEE (China Center for International Economic Exchanges), has expressly stated that he does not believe Facebook’s digital currency Libra will be successful. He firmly holds that China’s central bank is close to developing its blockchain-based financial technology and will be the first in the world to officially roll out a usable digital currency, according to Pandaily.com.
China’s DCEP would be issued in a ‘two-tiered’ system. The first would connect the People’s Bank of China (PBoC) with commercial banks in the country in order to issue the digital currency. The second will work to connect the commercial banks to retailers, businesses, and individuals.
The Chinese Digital Currency / Electronic Payments system, or DCEP, might turn out to be the only digital currency that will be allowed to exist within China. This comes at a time when Libra — the planned stablecoin project from Facebook, may never actually see the light of the day.
With the race to complete the public launch of DCEP currently underway, some experts have expressed concerns that this digital currency may not even be a cryptocurrency, but instead a centrally controlled digital currency that actually acts as a devious tool for surveillance.
DCEP is said to be using a controllable anonymity system where users from point-to-point would have the option to remain anonymous to each other but would not be able to stay anonymous to the state. Because of this, enacting such a system could give China more control over its economy and citizens, while providing an increased resolution on the spending habits of those within its border, and perhaps even globally.