The difference between DCEP and Libra

DCEP is the abbreviation of the following four English abbreviations: digital currency electronic payment, which is China's own digital currency. From the literal meaning of English, more emphasis on electronic payment. However, its positioning is the same as RMB, which is only expressed in the form of digital currency.

Libra is a digital currency closer to a payment instrument than bitcoin. It can be compared to the stable currency in digital currency. Libra is the asset reserve of a basket of currencies. What is a basket of currencies? A basket of currencies is a composite currency that combines an existing group of currencies in a certain way.

What is the difference between DCEP and Libra?

In terms of the number of users and regions, DCEP mainly faces Chinese users, while Libra faces global users.

In terms of technical route, DCEP adopts hybrid architecture. In other words, whether DCEP uses blockchain technology depends on the technical route of commercial banks. Libra also uses a hybrid architecture. The bottom layer is a centralized architecture, while the top-level settlement uses blockchain technology.

From the perspective of governance mode, DCEP adopts the double layer operation system + centralized management mode. And Libra is governed by the Libra Association.

From the perspective of asset reserve, DCEP takes RMB as its asset reserve. This is also very different from Libra. Libra uses a basket of currencies as its asset reserve, which can be converted into any currency, with exchange rate fluctuations. DCEP takes RMB as its asset reserve, which has no exchange rate risk but inflation risk.

From the perspective of operation mechanism, DCEP adopts "two-layer investment" and "double-layer operation" mechanism, which is basically the same as the current mode and channel of RMB investment. The people's Bank of China will deal with commercial banks, commercial banks and ordinary consumers. Libra, on the other hand, uses blockchain technology to pool French currency and government bonds with a number of institutions.