Bank of China Launches Digital RMB Smart Contract

The Chinese majority state-owned commercial bank, the Bank of China, has launched a program to create a bridge between elementary school education and smart contracts. Based on a news release from Sohu.com, ultimately, the deal is a collaboration between local education authorities, financial agencies, and the parents of the interested students.

Interestingly, the program utilizes the renminbi smart contract pilot network which was recently launched. Meanwhile, the digital renminbi smart contract technology is laced with numerous advantages. Amongst which is transparency, reliability, automatic execution, as well as mandatory contract performance.

The Bank of China Sichuan Branch together with the guidance of the Chengdu Branch of the People’s Bank of China and the Chengdu Financial Bureau, in corporation with the Chengdu Longquanyi District Education Bureau and Chengdu Tianfutong Financial Services Co., Ltd. These outfits will collectively launch the “Longquan Education and Training” program using the digital currency pilot as an opportunity.

The Digital RMB Smart Contract

It is this “Longquan Education and Training” smart contract that adds a digital RMB method of payment for parents. The smart network possesses a feature known as card refund and inquiry. This feature in turn allows only one sale for just one lesson. It also permits the refund of unused fees. Utilizing the digital RMB app, parents can make inquiries about prepaid cards. 

Parents who live in Chengdu, the capital of southwestern China’s Sichuan province, can enroll their wards in after-school programs. Also, together with educators and financial agencies, these students can attend extracurricular activities. For both programs, they would make use of the digital yuan (or e-CNY) which is China’s central bank digital currency (CBDC).

Nevertheless, the launched project creatively uses and rummages through the benefits offered by the digital RMB smart contracts. This is still in its bid to solve the financial management needs of educational institutions. 

The digital RMB smart contract will prevent the danger of freezing and indiscriminate deduction of training institutions’ accounts. Lastly, it would take advantage of the zero rates of digital currency to reduce the financial pressure on training institutions.

However, the Bank of China is still actively corporating with Chengdu Longquanyi District Education Bureau and Chengdu Tianfutong Financial Services Co, Ltd. to promote and implement the project further.