16Sep/19Off
Wake up, US Federal Reserve! China just showed how digital currency is done
醉翁之意不在酒 (The ulterior motive)
I believe China’s DC/EP product is designed to replace the mobile payment systems in China.
China’s approach with the DC/EP reflects an effort to create a cash-like payment infrastructure without going through a financial institution and, more importantly for many entities (instead of just Alipay or WeChat Pay), to conduct transactions.
But China’s DC/EP centralized design does grant powers to the Chinese government, and depending on technical details that are not available yet, those powers can be abused to censor transactions, track individuals and their spending habits, and favor government loyalists.