Recently, China’s central bank digital currency (CBDC), also known as the digital yuan or CNY, has received upgrades that give it smart contract functionality and introduced new use cases. These include the ability to purchase securities and make offline payments. The innovative contract feature was launched on the Meituan app, a Chinese platform that provides retail and food delivery services, according to a local cryptocurrency media outlet 8btc. With this feature, when a Meituan user places an order and pays with their e-CNY wallet, a smart contract activates and checks for keywords and items in the order. If a user purchases something on the list of keywords for the day, they enter the draw to win a portion of the prize.
A portion of a “red envelope,” or hongbao in Chinese terminology, 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 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 utilized to purchase securities. Additionally, investors can use the CBDC to buy stocks through the Soochow Securities mobile app.
According to a January 11 Yicai Global report, users of the digital yuan wallet app can now utilize their Android phones to make contactless payments even when their device is not connected to the internet or has electricity.