• – The Central People’s Bank of China (PBoC) has started work to make smart contract technology ready to be exploited in the digital yuan project.
  • – Together with these studies, it stands out as an indication that blockchain technology may play a more important role in the future of e-CNY than anticipated.

New situations have arisen as the Chinese government, also known as China’s President Xi Jinping – has embraced blockchain as a growth engine. Most notably, the PBoC emerged with its insistence that the digital yuan was not built against blockchain technology. Meanwhile, crypto-assets are on the agenda with the pull-out in China. With the mining of tokens banned and most activities involving crypto (-many things like trading and payments) appear to be banned as well. The first crypto edition came into effect in 2017, and the second edition came out last year.

While smart contracts continue, nowadays it is generally used in the crypto field in blockchain networks. There are also goals to ensure that users do not need a third party. The most important of these goals is to allow them to buy and sell products or services using a crypto asset. While smart contracts continue to be provided, studies are continuing to be used in all kinds of blockchain networks, mostly trying to establish a relationship with protocols such as Ethereum (ETH).

However, the PBoC also reveals its different aims on the subject. One of the foremost of these aims is to create a digital CNY ecosystem. They felt that they should abandon the idea of ​​using a decentralized network like Ethereum to create this ecosystem. That’s why they move forward, hoping to adopt potentially useful concepts from the crypto world.

According to information published by the China Securities Journal (via the Financial Associated Press), the bank’s Digital Currency Research Institute has decided to use a term in its titles. It is known that this term stands out as the term “smart contract”. It was also on the agenda that he made eight patent applications during this term.

According to the information from the media organization, it is also known that most of these applications were made in the last year. It is also seen that most of them stated in their explanations that they are related to “basic technical solutions” used in smart contracts. One of the patents adopts two focal points: smart contract “registration” and “execution methods”.

The same media outlet’s statements also include local financial and IT experts applying smart contract technology to the digital yuan. Recently, they also mentioned that the PBoC is considering “expanding” the token’s payment “ecosystem”.

  • – With the development of smart contract-backed digital CNY, users will also gain access to the details of further payment “customization”. Permits required for this removal situation will also be provided. It is also among the ones that will appear in more suitable payment instruments for daily users.



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