Non-tangible but not decentralized, smart contract technology but Bank of China strict regulations: this is China’s digital currency, the perfect means to perfecting its social credit system. Western governments, especially the European Union, are keeping notes…
Chinese banks and businesses are embracing digital yuan-powered smart contracts, as they closely monitor the progress of the central bank digital currency (CBDC). This week, the Postal Savings Bank of China, a state-run entity, jointly introduced the country’s first “prepayment product” utilizing digital yuan smart contracts.
Unlike many CBDC initiatives, China’s e-CNY doesn’t rely on blockchain technology; instead, it employs centralized IT solutions under the control of the central People’s Bank of China (PBoC). However, the PBoC is actively exploring innovations from the world of Bitcoin, cryptocurrency, and blockchain, including smart contracts, to enhance sectors like financing and local government spending.
