<![CDATA[<figure class="image"><img src="https://cimg.co/news/125348/331063/adobestock-615020708.jpeg" alt="A person sitting in front of an open laptop computer signs a digital representation of a contract-like document with a stylus." srcset="https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_1500_931.jpeg 1500w, https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_1200_745.jpeg 1200w, https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_900_559.jpeg 900w, https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_720_447.jpeg 720w, https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_600_372.jpeg 600w, https://cimg.co/news/125348/331063/responsive-images/adobestock-615020708___media_library_original_300_186.jpeg 300w" width="1500" class="content-img"><figcaption>Source: JOURNEY STUDIO7/Adobe</figcaption></figure><a href="https://cryptonews.com/tags/china">Chinese</a> banks and businesses want to step up their use of <a href="https://cryptonews.com/tags/digital-yuan">digital yuan</a>-powered <a href="https://cryptonews.com/guides/what-is-a-smart-contract.htm">smart contracts</a>, as the financial and industrial sectors eye <a href="https://cryptonews.com/tags/CBDC">CBDC</a> progress.Per the Securities Times (via <a href="https://stock.stockstar.com/IG2023092100018457.shtml" rel="nofollow">Stockstar</a>), the state-run Postal Savings Bank of China has &ldquo;officially&rdquo; co-launched the nation&rsquo;s first &ldquo;prepayment product&rdquo; to make use of digital yuan smart contracts.Unlike many other CBDC projects, the e-CNY is not blockchain-based.Rather than making use of decentralized ledger technology, it utilizes centralized IT solutions.These solutions are all controlled by the central People&rsquo;s Bank of China (PBoC).But the PBoC has been keen to cherry-pick IT advances from the world of <a href="https://cryptonews.com/tags/bitcoin">Bitcoin</a>, crypto, and blockchain, with a view to integrating these in the e-CNY project.One of these is smart contract technology.Chinese economic thinkers believe this will help in business areas like <a href="https://cryptonews.com/news/green-finance-options-emerge-for-chinas-digital-yuan.htm">financing</a> and local government spending.The Postal Savings Bank&rsquo;s platform has been created in conjunction with China Fangyuan, a heavy machinery, transport, and construction-focused business group.The parties have called their new platform Wuka, and say it can provide merchants with a range of &ldquo;business capabilities,&rdquo; including card issuance, project supervision, marketing, and management.The media outlet noted that the new platform &ldquo;introduces digital yuan smart contracts into the merchant business field.&rdquo;It added that the move would also &ldquo;promote the use of the digital RMB&rdquo; in the &ldquo;prepayment space.&rdquo;Prepayment deals are common in industries where vendors provide custom- or tailor-made products or services.Banks worldwide are growing increasingly keen on using smart contract technology.But in China, state-run entities have attempted to integrate this with the digital yuan project.In a <a href="https://opinion.caixin.com/2023-09-14/102103558.html" rel="nofollow">column published in the financial newspaper Caixin</a>, the Digital Currency Department of the Industrial and Commercial Bank of China ( ICBC), wrote:<blockquote>&ldquo;In the future, all contracts based on [...] payments in the digital economy will be [compatible] with digital [yuan-powered] financial services.&rdquo;</blockquote>The ICBC wrote that digital yuan smart contracts would be particularly valuable &ldquo;in situations where trust is weak and where breaches of contract occur frequently.&rdquo;<h2 id="the-e-cny-smart-contracts-new-ground-for-the-chinese-digital-yuan">The e-CNY &amp; Smart Contracts: New Ground for the Chinese Digital Yuan?</h2>The bank noted that e-CNY smart contracts will &ldquo;effectively ensure the enforcement and automatic honoring of contracts.&rdquo;Using the CBDC in smart contracts makes sense, the ICBC claimed, because &ldquo;credit rating is upgraded from the commercial credit of a commercial entity to the national creditworthiness of the PBoC.&rdquo;The use of the coin will thus &ldquo;enable mutual recognition and interoperability across business sectors,&rdquo; the ICBC concluded.On the retail front, the PBoC is hoping to <a href="https://cryptonews.com/news/china-set-for-digital-yuan-adoption-drive-ahead-of-asian-games.htm">attract international attention for its coin at the 19th Asian Games.</a>The games got underway on September 21 in Hangzhou.<figure class="image"><img alt="Athletes at an e-CNY &ldquo;experience booth&rdquo; at the Asian Games in Hangzhou, China." src="https://cimg.co/news/125348/331066/ecny-21.jpg" srcset="https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_1360_625.jpg 1360w, https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_1200_551.jpg 1200w, https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_900_414.jpg 900w, https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_720_331.jpg 720w, https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_600_276.jpg 600w, https://cimg.co/news/125348/331066/responsive-images/ecny-21___media_library_original_300_138.jpg 300w" width="1360" class="content-img"><figcaption>Athletes at an e-CNY &ldquo;experience booth&rdquo; at the Asian Games in Hangzhou, China. (Source: CCTV 13/Screenshot)</figcaption></figure>Spectators, athletes, and coaches will be shown how to use the coin at &ldquo;experience booths&rdquo; run by the likes of the ICBC at and around games venues.<figure class="media"><oembed url="https://twitter.com/shazia_ghani/status/1702354197214355961"></oembed></figure>Domestic spectators, meanwhile, have been encouraged to use the coin to buy tickets and pay for public transport rides to event venues.
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Chinese Banks, Firms Make Digital Yuan Smart Contract Progress

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