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DCEP Objectives
A recent article provided further information on the motives of CN's proposed official digital currency DCEP. They are essentially: curbing the power of Alipay and WeChatPay, capital controls and traceability. Another often mentioned objective is data collection.

Alternative Alipay
  • A central bank would naturally be wary of any over dominance of commercial wallets in the fundamental economic function of payments, even if simply from the viewpoint of prudence and contingency.
  • How then could DCEP rein in Alipay and WeChatPay?
  • One way is to bar Alipay and WeChatPay from accepting DCEP in favour of an official wallet.
  • Thus the public will have three wallets: 1) a physical wallet or purse for cash 2) an Alipay and/or WeChatPay wallet for emoney and 3) a central bank wallet for DCEP.
  • Alternatively, AliPay and WeChatPay may transact DCEP under license, regulation and an official API.

  • We shall lump traceability, capital control and data collection under 'traceability' as they are related to data collection and record keeping.
  • This is a biggie as it may mean payment records which were formerly collected and stored in books, ledgers, point-of-sales, accounting databases in a myriad of businesses and entities will now be recorded in a central ledger. (Currently, authorities generally gather only aggregated information like total sales).
  • This is because a digital or crypto currency must maintain a single 'truth' and an auditable record of how that 'truth' is arrived at. Thus if there is 100 bucks in your wallet, it will have a record where that 100 bucks came from (eg. 90 bucks from a bank withdrawal, 10 bucks from a promotional voucher).
  • Face recognition (and GPS apps) knows where you go, internet logs (and cookies) know what your surf, and ledgers know how you transact (see above). Add to these gadgets which hear what you say, see what you do and sense how you feel, welcome to the new world.