China’s Digital Yuan will utilize Smart Contracts: China’s central bank has announced a new White Paper for Digital Yuan and explained about variant and new things for their national digital currency. according to this new White Paper, Chinese Digital Yuan will Utilize and support Smart Contracts.
According to Cryptobriefing, China’s central bank, has published a new White Paper for their national digital currency “Digital Yuan”.
It has been said in this White Paper that the Digital Yean version is called e-CNY too, is going to utilize Smart Contracts. According to Chinese central bank’s White Paper, Smarty contract will make automatic payments that has been decided by the conditions of the deal parties possible.
Smart Contracts are generally made on a Blockchain, however China’s central bank hasn’t said anything about this and about the fact that Digital Yuan is using Blockchain technology or not.
There is also this information in this White Paper that Digital Yuan is using some good technology like digital certification, digital sign and encrypted storage space to keep trades safe and prevent unnecessary costs.
This means that Chinese central bank is going to be the first bank that combines Smart Contracts with its own digital currency. It says in this new Digital Yuan’s White Paper that Smart Contracts needs to improve the innovation in Businesses.
Except the details of Smart Contracts in the China’s central bank’s White Paper, there is also said that Digital Yuan can be stored in hardware and software wallets based on security chips.
It’s also recommended in this document that to improve and increase the soring devices security, you can add some devices to your phones, wearing gadgets and IOT devices.
China’s central bank has also claimed that they care for securing the personal data and transition’s privacy and has said that Digital Yuan is going to give a lot less information about the money transfers than the old electronic payments. This bank has also said that the data of the transition to a third person or a governmental organization will not be shared unless there is a law about it.
This Chinese central bank’s claims about their new White Paper about Digital Yuan is completely against the media that says China will probably use Digital Yuan to increase financial supervision.
In the last section of this White Paper, there are some information about that less value transitions will be unknown and there is also the ability of tracking high value transitions to make sure big transitions are compliance with money laundering and tax evasion regulations.
We have to say that China’s central bank was researching about their national digital currency project from 2014 that an executive committee was formed for it.
Although China still hasn’t executed that Digital Yuan in a national level, but there has been some wide test plans in different cities around this country. Chinese central bank did actually with publishing this new White Paper revealed that China is going fast and in a wide range to execute Digital Yuan project faster.
As China is developing its digital currency, some other countries are slowly making progress in this field. A lot of countries are searching for a way to make their national currency at the moment to improve their global financial infrastructures and reacting to the increasingly demand of digital currencies.
We should say that a while ago, American central bank and MIT university is doing some researches about technological architecture of their national digital currency. However American governmental organizations are still hesitating about developing a digital currency.
