Blockchain

China’s digital currency might be the ‘creepiest surveillance tool’ ever, U.S. official says

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Speaking at the Subcommittee on Oversight and Investigations, Ohio representative Warren Davidson said that China’s DCEP or state-backed digital currency is a matter of grave concern.

According to Davidson, China shouldn’t be praised for its initiatives in digital currencies because its DCEP is nothing but a Trojan Horse for full-scale and nationwide surveillance. 

He said that if China is indeed sincere with its “good intentions” with digital currencies, they must adopt decentralized digital ledger technology, instead of a highly centralized system. 

The massive potential of DCEP

DCEP or Digital Currency Electronic Payment is expected by many financial experts to create a big impact on the global economy, given China’s big influence on the global stage. 

But the International Association of Independent Accounting (IAIA) made it clear that DCEP is not a cryptocurrency because it’s not based on a distributed ledger technology. IAIA also added that DCEP’s issuance and exchange are all directly controlled by the Chinese government. 

DCEP will enable the government to monitor its economy in a more accurate level and can keep track of its citizens’ spending habits whether they are inside or outside the country. 

DCEP will expand outside China

The Chinese government has grand plans for its DCEP, which extends not just across China but outside the country as well. Analysts predict that China intends to expand DCEP in Asia and Africa, to make Yuan as the world’s reserve currency. 

Another feature of DCEP that would allow it to be accepted openly is its ability to bypass traditional intermediary payment entities such as Apple Pay and Google Pay, which means that users don’t have to pay transaction fees. Also, DCEP is designed to work even without an Internet connection. 

 

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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