Competition and Cooperation between Digital RMB and Traditional Payment Methods

In recent years, with the gradual expansion of the pilot scope of Digital Renminbi (DCEP), China's designated pilot regions for DCEP have encompassed 28 provinces. Concurrently, the scale of DCEP in daily consumption scenarios has steadily grown, with transaction volumes continuously increasing. DCEP confronts both opportunities and challenges in its competition and cooperation with traditional payment methods, such as paper currency, third-party payment platforms, and commercial banks. Through a comparative analysis of DCEP and traditional payment methods, this paper delves into the strengths and weaknesses of DCEP relative to its counterparts. Beyond mere comparison, it also examines the potential for collaboration between DCEP and traditional payment methods. Furthermore, a case study focusing on Suzhou, one of the pilot regions for DCEP, is conducted, analyzing the usage scenarios and payment modalities of DCEP. By integrating relevant data from other pilot regions, this paper identifies existing issues in the development of DCEP and offers suggestions for improvement.