The digital yuan (eCNY), the central bank’s digital currency, has undergone updates that give it smart contract functionality and a number of recently disclosed use cases.
According to a Jan. 17 report by regional bitcoin media site 8btc, the Meituan app, a Chinese app that offers retail and food delivery services, has started using smart contracts.
A smart contract is triggered when a Meituan user places an order and pays with their e-CNY wallet. It then searches for keywords and the products they have purchased in their order. A user enters a drawing to win a portion of a reward if they purchase something from the list of keywords for the day.
A portion of a “red envelope,” or hongbao in Chinese parlance, containing 8,888 yuan, or just over $1,300, is the reward.
Small packets called “hongbao” are customarily used to give money as a sign of good fortune during the Chinese New Year.
A feature allowing users to send virtual red envelopes was added to the e-CNY wallet app in December in an effort to increase usage before the Chinese New Year on January 22.
Digital yuan has new applications.
New applications for the e-CNY have been added recently in addition to the most recent development.
According to a China Securities Journal article from January 16, e-CNY was first utilised to purchase securities. Additionally, investors can use the CBDC to purchase stocks through the Soochow Securities mobile app.
According to a Jan. 11 Yicai Global report, users of the digital yuan wallet app now have the ability to utilise their Android phones to make contactless payments even when their device is not connected to the internet or has electricity.
The development of new applications for the digital yuan comes as China struggles to increase CBDC use.