The DCEP that the central bank will launch at the end of this year indicates that the substitution of paper money is inevitable. So, will WeChat and Alipay be terminated? What's the difference between them?
First of all, DCEP is a digital currency, which has transaction attributes and is a payment tool; Wechat payment and Alipay are only electronic payment methods. In other words, Alipay or WeChat payment is just a payment system and a third-party platform.
For example, if we go to the supermarket to buy things, if the settlement method in digital currency belongs to payment, paying with paper money is an attribute; Using Alipay, WeChat and other software means using the payment system, and paying with UnionPay card is an attribute.
2.DCEP is issued by the central bank and settled by the central bank; Alipay and WeChat payment are settled by commercial banks. In this way, the effectiveness and security of DCEP are higher than that of WeChat payment and Alipay. Because the central bank will not go bankrupt, but commercial banks will go bankrupt. Deposits within 500,000 yuan in commercial banks are guaranteed, and those exceeding 500,000 yuan are not guaranteed.
Thirdly, the most special feature of DCEP is that it can realize network-free payment. Even in garages, basements and airplanes, as long as the mobile phone has electricity, barrier-free payment can be realized; Wechat and Alipay must be networked to realize payment.
You can imagine such a scene: as long as you and I have DCEP digital wallets on our mobile phones, we don't need the internet. As long as the mobile phone has power, the two mobile phones can touch each other and transfer digital currency from one person's digital wallet to another person's wallet.
Fourth, WeChat and Alipay must first bind the bank card, and then pay with Alipay or WeChat scan code. DCEP does not need to bind bank accounts, and the transfer between users has nothing to do with bank accounts. This is the same as in digital currency such as Bitcoin. As long as you have DCEP's digital wallet, you can scan the code to pay.
In fact, DCEP is very similar to WeChat Pay and Alipay in payment scenarios, and it is expected that the experience of future use will be very similar. In the future, as long as electronic payment can be used, there will be a central bank digital payment port.
So for ordinary people, with DCEP, you just have one more payment method, just like mobile payment has Alipay first, and you can also pay through WeChat. Use anything convenient. However, the emergence of digital currency is bound to get a share from WeChat Pay and Alipay, which have already occupied 90%+ of the mobile payment market.