• China has launched smart-contract functionality for its central bank digital currency (CBDC), the digital yuan, through the e-commerce app Meituan.
• Through the smart contract, users can win part of a daily prize of $1,312 for using the digital yuan.
• China has been at the forefront of CBDC development among major countries, as it started to test the digital currency as early as 2020.
The Chinese government has recently made a major move in the world of digital currencies by introducing smart-contract functionality for its central bank digital currency (CBDC), the digital yuan. This new feature is being launched through the popular e-commerce app Meituan, one of China’s largest food delivery and lifestyle apps.
The new smart contracts will allow users to win part of a daily prize of 8,888 RMB ($1,312) for using the digital yuan when making payments on the app. Whenever a user places an order and pays with the digital yuan, the smart contract will be triggered and will search for certain keywords in the list of goods purchased and the merchant name. If the user happens to have some of those keywords, which are changed daily, the smart contract will allocate a portion of the 8,888 RMB to their digital wallet.
The introduction of the digital yuan smart contract is the latest development in China’s ongoing effort to become a global leader in the world of CBDCs. The country has been one of the first countries to begin testing the digital currency, starting as early as 2020. It is currently being used in retail transactions, as well as to buy securities, but the introduction of smart-contract functionality on a mass retail scale is a new and exciting development.
The Chinese government is continuing to show its commitment to the development of the digital yuan and other CBDCs, which could revolutionize the way people make payments and conduct international transactions. By introducing the new smart contract feature, China is hoping to bolster its position as a global leader in the world of digital currencies.