China’s digital yuan gets new use cases as well as smart contract functionality.

China’s central bank digital currency (CBDC) – the digital yuan, or eCNY – has received upgrades that give it a series of newly unveiled use cases as well as smart contract functionality.

Smart contract function launched. Meituan appAs of January 17, a Chinese app offers retail and food delivery services. Reports Via local cryptocurrency media outlet 8btc.

When Meituan customers place an order and pay with their e-CNY wallet, a smart contract is triggered and searches for keywords in their order and purchased items. If a customer buys something on the keyword list for the day, they go into a drawing to win a share of the prize.

The prize is part of a “red envelope” known locally. hongbao Contains 8,888 yuan worth just over $1,300.

Hong Bao These are small packets traditionally used to give money gifts on Chinese New Year as a sign of good luck.

A user prepares to send a digital red packet on the messaging app WeChat. Image: Youtube

In December last year, the e-CNY wallet app introduced a feature for users. Send digital red envelopes. In an effort to promote adoption ahead of Chinese New Year on January 22.

Digital Yuan sees new avenues for use.

Along with the latest development, new uses of e-CNY have also been added in the past few days.

A January 16 Reports According to China Securities Journal, e-CNY was used to buy securities for the first time. Investors can also use CBDC to buy securities through a mobile app for local brokerage firm Soochow Securities.

The Digital Yuan Wallet app also received an update in which users can now make contactless payments using Android phones even if their device is without internet or power, according to Yicai Global on January 11. Reports.

New uses for the digital yuan come as China struggles with its CBDC adoption rate.

Related: Former BoE adviser says CBDCs are not worth the costs and risks.

A former official of the country’s central bank, the People’s Bank of China (PBOC), even made one Rare public entry In December 2022, saying that the digital yuan was “underutilized” and “highly inactive” and added, “The results are not ideal.”

PBOC on January 10 Currency circulation includes e-CNY. Reports for the first time showed CBDC represented about 0.13% of the 10.47 trillion yuan ($1.54 trillion) in circulation at the end of 2022.