It can be seen that M0 is the most liquid part of currency, and the existing media is mainly paper money issued by the central bank. This DC/EP is a substitute for M0, and Alipay WeChat is a substitute for M 1, M2. The difference is that DC/EP is legal and mandatory, and any unit or individual must accept legal tender.
In addition, the reason why we always hear the year-on-year increase of M2 instead of M0 is because M2 reflects the actual purchasing power (M 1) and potential purchasing power, and is an indicator of total demand and future inflationary pressure in economics. If the annual growth of M2 is too high and the total amount is huge, it shows that our economic investment is overheated, the demand is relatively insufficient, and there is a bubble in assets.
On February 28th, 2020, Alipay applied for a patent in digital currency. According to the patent book, there are many kinds of wallets in digital currency, and different wallets can provide different services. The opening request contains the user's logo.
From the convenience point of view, when C-end users use digital currency, the way is similar to using Alipay WeChat, except that digital currency will use the bank's "digital wallet" as the channel. In addition, DC/EP can complete payment without networked terminal equipment, which can better replace paper money.