It is widely known that Bitcoin miners are subjected to strict regulations in China. Despite that, in nothing short of a surprise, China is working to now develop its very own cryptocurrency. If things go well, the new cryptocurrency might likely get adopted pretty soon. Around five years ago, China’s DCEP or Digital Currency and Electronic Payment was almost complete. There were, however, several roadblocks. But as per the latest reports, China is gearing up strong and is expected to release the DCEP soon.
Mu Changchun, the leading authority of the digital currency research institute of the Chinese Central Bank, has also stated that China will soon release DCEP. China’s new cryptocurrency will be a sovereign digital currency. Unlike the decentralized format of Bitcoin or any other existing cryptocurrencies.
How is China’s Cryptocurrency Different?
China’s new cryptocurrency, DCEP, differs from the existing cryptocurrencies concerning multiple parameters. First of all, the central value source underlines DECEP and other cryptocurrencies such as Bitcoin is different. Since Bitcoin can be mined, it inevitably means that the value source is a decentralized one. On the other hand, DCEP is entirely sanctioned by the Chinese government. Therefore, it is the government that will distribute the cryptocurrency with the help of reliable monetary systems as well as through traditional banks. It means that DCEP is centralized, unlike the other cryptocurrencies.
Secondly, the underlying technology that is involved in the operation of DCEP and Bitcoin is different. The government is responsible for controlling the blockchain ledger, and the government does not distribute the currency through any network.
Apart from that, DCEP will function just like regular currency. Hence, it can also be integrated through the commercial network of China. As the government does not distribute the mining nodes of the blockchain ledger, the biggest advantage at hand is that DCEP will be mostly free of any time lags, which are a significant problem of Bitcoin or any other cryptocurrency.
Another critical aspect of China’s new cryptocurrency is that it will be valued like yuan. Hence, it will not be traded in the form of fractional values. There is no doubt that this framework is much more seamless, and the customers will be able to use them without any hassle. DCEP can be as good as any other digital payment platform, and other nations can also adopt the idea.