100 Q&A about CUN 038 | Differences between DCEP and the third party payment

However, from the monetary category, the third-party payment corresponds to digitized RMB in M1 and M2 levels, among which the funds deposited in the reserve account by Alipay and WeChat Pay are M1, while money funds purchased by users are M2. Neither does the third-party payment have the legal effect of M0, nor does it replace it. They are on different tracks.

The original intention of the Central bank’s issuing of DCEP is to improve the efficiency of macro-control and reduce the cost of regulation, such as improving the efficiency of current delivery, balancing the features of DCEP that are portable, anonymous and supervisable of the three monetary regulations (anti-money laundering, anti-terrorist financing, anti-tax evasion), reducing the cost for regulation and banknote issuing. The scenarios, such as consumer scenario that involves Alipay and WeChat Pay, and the social scenario and business financial management, are apparently beyond the scope of functions of the Central bank.

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