1. Central Banks Digital Currency DCEP ("Digital Currency Electronic Payments", i.e. issuance. "Digital Currency and Electronic Payment Instruments") has been "imminent". From the establishment of the Central Bank's Legal Digital Currency Research Group in 2014, and especially from the establishment of the Central Bank's Digital Currency Research Institute in 2017 and the establishment and operation of its Shenzhen Financial Technology Co. Ltd. the issuance and circulation of legal digital currencies in China in 2018.

2. Legal digital currencies are not only significantly different from cash and deposit money circulating in the monetary system, but are also closely related to electronic money under the electronic payment system. Both legal digital currencies and cash have the strongest credit backing, both of which are credits from China's central bank, i.e., as long as the People's Bank of China does not go bankrupt, legal digital currencies will have the same value as cash such as bills and coins, with no direct loss. At the same time, both have the same liquidity value, i.e. both legal digital money and cash are M0. In finance, they are defined as the first level of the money supply - net money or cash. Of course, there are differences between the two.

3. China's central bank's legal tender digital currency itself appears to be a substitute for cash, which is represented as an electronic form. The vehicle in which it exists is often referred to as an e-wallet or digital currency account. In the process of digital currency transmission, although the central bank will strengthen privacy protection and allow anonymous transmission, we can still based on big data and other technological means of currency circulation link big data financial analysis, supervision and management of anti-money laundering and other financial crimes.

In contrast, in the delivery and circulation of pure cash, the central bank only has regulatory power in the theory of monetary law. Legitimate digital and deposit currencies are forms of electronic money. They have the same advantages of not being in direct physical form***, are not easily lost, and are easy to keep. However, there is a significant difference between these two types of bank credit support:Deposit currency, i.e., electronic deposits in an account opened by the owner of the currency in exchange for cash, such as banknotes or coins, in a financial institution. Behind the deposit money, it does not represent the credit of the central bank or the credit of the state, but the credit of the financial institution where the owner of the currency opens a deposit account. There is a theoretical risk of insolvency of the financial institution, otherwise the central bank would not need to establish a deposit insurance system to protect the interests of depositors on deposit.