The Development and Impact of Digital Currency from the Perspective of DCEP

Social production at different stages has given birth to different forms of currency, and the rapid development of the digital economy has also promoted the transformation of currency into a digital form. On the basis of reviewing the development of the digital currency concept, this article summarizes the development and characteristics of the central bank's digital currency DCEP. In addition, by comparing DCEP with Libra, WeChat, and Alipay, the advantages and disadvantages of digital currencies are analyzed, and the possible impact of DCEP is further analyzed and summarized. Finally, combined with the analysis of DCEP, this article puts forward opinions and suggestions on the development of central bank digital currencies. This article believes that compared to private digital currencies, central bank digital currencies are more reliable and stable as a centralized digital currency. However, in the process of its development, attention should be paid to the protection of privacy. In addition corresponding mechanisms should be established to avoid currency overruns and financial disintermediation.