DCEP: Will China DOMINATE Digital Currencies?

China has just embarked on one of the biggest and most ambitious projects involving money in the history of mankind. It's called Decept. Definitely not a very sexy or interesting sounding name. So trust the Chinese to come up with something as interesting as digital currency electronic payment, Decept. But what the project is in terms of a scope and what it's trying to do is trying to smash apart age old decade old banking infrastructure and systems. It's trying to smash apart that TT bank transfer system that we all love and hate. And also essentially how banks store money instead of stockpiling tons of renminbi, Chinese currency, they can now stockpile digital versions of debt. Now that doesn't really sound much today. So what is this point of this deception project? Bad pun intended. It's really has one big goal in mind, which is to change this right now. The U S dollar is the world's currency. Every government, every bank is storing reserves of USD because it's the currency used for trade. They really want the greater ambition to this is for banks to stockpile digital versions. Decept digital versions of this. And in many senses, it was what Mark Zuckerberg tried to do with Facebook Libra. It's trying to revolutionize money. But China's taking this to a whole new level being much greater and much more developed than the Facebook Libra. It's really out there setting these giant goals, taking these giant risks to essentially replace the U S dollar as the world's currency. In this video, we're going to look at what's currently being developed in Decept, what the current apps that are being launched are, how it kind of works. And what are the greater ambitions if you actually want to kind of figure out the master plan of China? Let's start off with what is Decept first of all. Essentially, it's a digital version of this. This is the renminbi. These are a hundred dollar notes. It's going to replace this with this. Okay, not a Samsung phone, but rather it's a digital version that's held in this phone. Now, that doesn't really sound like anything new. Puff, it's not special. We've got Android pay. We've got Samsung pay. We've got Apple pay doing exactly that. So what's different about Decept? Well, actually, it's very different because Decept is truly a digital currency. To explain this a little bit is right now, all this virtual currency that we have on our phones, Samsung pay, Apple pay, they rely on the old banking infrastructure. So to move money around, you still have to pay the old banks, that old infrastructure. And these fees are very apparent if you've ever been on the receiving end. So if you ever tried to receive money from a friend via PayPal or even sell an item in eBay, you can know that those fees can rack up to 6%, 7%, 8%. And all these fees are just paying that banking infrastructure that's been there for a long time. Basically, essentially paying tax on every transaction. Decept is different. Decept, one of the telltale signs is different is that you can actually touch two phones by NFC and transfer currency. Decept can also be sent digitally to other users via the internet as well. So not just touch NFC sent, but also digital currency sent without having any payment friction. So it can be sent essentially for free, which is absolutely crazy if you actually think about it. Because right now those currency payments, right, can add up to a lot. And we've been exploring the concept of cryptocurrencies a lot, which was one of the solutions to solve this. Now, I do want to say that what's kind of interesting and the overlap between Decept and cryptocurrencies is that Decept borrows a lot of the concepts from blockchain and Bitcoin. Essentially, it uses a UTXO model, a model where each individual transaction is tracked individually, much like a pile of change. Also, Decept borrows a lot from just the cryptocurrency technology as well. The idea of private and public keys and digital signatures. There's one thing, of course, that Decept didn't borrow from blockchain and Bitcoin, which is that it's not decentralized. This is an adaptation. It's kind of the reverse in terms of philosophy where with Bitcoin, everyone can be a node. Everyone can essentially be on the same level. Almost everyone's like a bank. Here with Decept, there's only one central bank. There's only one central signature that matters. The one bank that rules them all, which is the People's Bank of China. In fact, there is a digital signature that's signed by the People's Bank of China on every single Decept issued. And the People's Bank of China can issue, create Decept at will, and also destroy it at will. And that's how much power that centralized entity does have. To find out more about Decept, check out boxmining.com slash Decept. The link will be down below. But what we did is we compiled a whole list of all the features, the adoption methods, everything we've known about Decept via translation of Chinese articles on there. And I do want to give a special thanks to Matthew Graham, the CEO of Ceno Global Capital as well. He's been providing a lot of translations and Q&A and insight into how Decept is going to work. So one thing key to note here is it kind of really validates the technology behind Bitcoin, behind blockchain. By using this idea of digital signatures and cryptography, we're moving away from that age-old system of just TTing messages. Banks messaging each other, keeping trying to keep these paper kind of databases, ledgers. This is a kind of quantum leap forward, if you want to say that, where it leaps from age-old technology to a newer technology. And in many senses, it validates what we've been doing in the cryptocurrency space for a long time. So now that we know a little bit about what Decept is, let's talk about the deployment process and what's kind of currently being done and kind of pushed along the way right now. Currently, Decept is being rolled out very much like how paper renminbi, Chinese money, is being rolled out. It's rolled out by the central bank. It's going to be sent to their immediate tier one friend. So these are the big banks in China that are the closest to the People's Bank of China. After that, the tier one bank is going to roll it out to the tech firms. So we're going to see, you know, your WeChat pay, your Alipay essentially being able to hold Decept. And you can already see these features, these mock-up images of Alipay and WeChat pay being able to hold that digital currency. So tech giants will be able to use this after the banks had the first initial goal. The first tier banks will also send it to the second tier of banks, blah, blah, blah, to the smaller banks and start rolling it out. Just very much similar to how renminbi is rolled out. This deployment system is going to be very similar. There's going to be absolutely no speculation when it comes to the value of Decept. Decept will always be pegged one-to-one to the renminbi. And you can actually see options. For example, right now we have a test version of the Agriculture Bank of China. They've issued a test app and the interface already shows the ability to kind of withdraw money from the bank and convert it one-to-one into Decept. So essentially it's a one-to-one swap. Your renminbi is being destroyed at the same time Decept is being created. And in many ways, this prevents the system from introducing new money to the system. It's always going to be that swap between current paper money to the digital renminbi. Now, how do you actually view this? Is this good and bad? I feel like this is a huge amount of competition in terms of money. If the Western governments don't adapt to the euro or the US dollar if they don't adapt to this, I feel like potentially China can capture a huge market where previously it's unknown, untapped. If you look at it, China has been pretty much at the forefront of innovation. And you look at systems like UnionPay gaining widespread adoption around the world. You can see that almost everywhere now. At every shopping mall, they're accepting UnionPay, which is the Chinese payment method. And potentially in the future, they could be accepting Decept as well. So it presents a lot of competition for the world. And I definitely see that if this is unmet, China could potentially have a huge dominant role here. In terms of cryptocurrencies as well, it's also quite interesting because as previously discussed, Decept can actually present a huge opportunity for cryptocurrencies too. Namely, of course, Decept is built already on a lot of the technologies that cryptocurrencies are built on. So if that is the case, then it's easy to transfer between Decept and crypto. Is there going to be a gateway that can be formed? Now, the answer is not immediate because obviously with Decept, the setup structure is not decentralized. It's got signatories from the central bank that are, well, not decentralized. It must be signed by one central figure. So it's not going to be immediate that a bridge can't be set up. What I can see is that the Chinese government obviously has no intention of promoting cryptocurrencies at this current point. Right now, in terms of legality, cryptocurrencies are not currencies in China. You cannot use them to pay for anything. In fact, it's illegal to use any form of currency other than the renminbi. So you've got to have Mao's head on every single transaction that you make. But what could be interesting are user-developed or project-specific bridges. Because whilst the government won't be wanting to make these bridges in the future, obviously, we as people can. So from a community perspective, from a project perspective, people can try to integrate that gateway. And we've seen a lot of progress like that in many ways. For example, over-the-counter trades. We've seen these buttons buy crypto pop up via OTC on many different exchanges. And we've seen a lot of OTCs also, just like the one I'm helping out, Genesis Block in Hong Kong here. They've been doing a lot of transactions, bridging the gap between fiat and with crypto. So if there's going to be a possible gateway done in the future, I definitely think so. And of course, by having more people getting used to the idea of digital currencies and how to save them, we also create a position where people are going to be more familiar with crypto, with your Bitcoin. Because now people are starting to get the hang of digital security. So I see two potential kind of advantages in the future or opportunities. One is user or company-made bridges, not sanctioned by the government, but obviously people are going to do it. Bridges between Decept and other currencies. And second, it's also about teaching people how to use digital currencies. Because it does require that little bit of knowledge, that little gap that prevents people from onboarding onto crypto. All right. So now that you guys know a little bit more about Decept, what are your opinions? Do you see that this is an opportunity for crypto for expanding digital currencies? Or do you see this as a threat, as a way to potentially introduce more centralization into the monetary system? I'd love to hear your comments down below. What I do have also on top of this video is a link, a combination of all the information that we have about Decept and the release. And it's all on boxmoney.com slash Decept. The link will be down below for you guys to check out and to reference. It'll be continuously updated as we know more. And all the screenshots, etc. are going to be there as well. So make sure you check it out. And guys, of course, thank you guys so much for watching this video. If you guys found this video helpful, please do click the little subscribe, like button down below and share it with your friends as well. Thank you guys so much for watching. See you next time.