Bank of China Launches e-CNY Smart Contract Product for Off-campus School Education

Annie Li   Aug 16, 2022 16:58

The Bank of China, in collaboration with the Education Bureau and financial authorities of Longquanyi District, Chengdu, has launched an educational electronic RMB smart contract prepaid fund management product, extending the pilot scope to school education, according to Chinese news media

The product enables parents living in Longquanyi District, Chengdu City, Sichuan Province, China, to use the digital renminbi central bank digital currency for extra-curricular tutoring.

The bank said it would first be required to pay for private education, with a smart contract matching the deposit in proportion to the course. Parents also don’t have to worry about the risk of unspent refunds if they miss classes, as e-CNY payments are automatically credited to their accounts via smart contracts.

The Bank of China noted that the smart contract launch, dubbed “Longquan Education and Training,” aims to replace the role of regulators in monitoring payment transactions between parents and private education entities.

Bank of China says:

“Use the advantages of digital renminbi smart contracts to solve the financial supervision needs of training institutions, avoid the risk of freezing and deduction of training institutions' accounts, and take advantage of the zero rates of digital currency to reduce the financial pressure of training institutions.”

Data shows that the digital yuan (e-CNY), the digital currency of the People's Bank of China (CBDC), is growing rapidly. Since the public trial, transactions in the new fiat currency have totalled 87.57 billion yuan ($13.68 billion).

The use of China's central bank digital currency (CBDC) has now airdropped 30 million digital yuan (e-CNY) to its Shenzhen residents in Shenzhen, aiming to change residents' spending habits and make them properly rejuvenated.

According to reports, the airdrop or distribution will take place through food delivery giant Meituan Dianping. Meituan-Dianping is one of the private partners helping the Chinese government extensively test e-CNY in the retail sector.

Image source: Shutterstock

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