The state-owned Bank of China reportedly disclosed details related to a new program to bridge primary school education using smart contracts.

Specifically, via a newly formed alliance with local education and financial authorities, parents living in the city of Chengdu, situated in China’s Sichuan province, will reportedly have the option to register for their children in after-school or extracurricular lessons, with the help from the digital yuan central bank digital currency (e-CNY).

Within the scope of the trial phase, parents begin by placing a payment for a deposit to a private educational institution for a string of lessons. After that, a smart contract will be generated as a binding for each lesson on a pro-rata basis to the deposit. 

In this manner, on the account of their children having to skip a lesson, the e-CNY payment is credited back to their account with the assistace from the smart contract, in an automated manner.

“The program seeks to explore the benefits brought forth by e-CNY smart contracts. One potential use case is replacing the role of regulatory authorities to monitor payment transactions between parents and private education entities. Another is improving transactions’ liquidity via zero transaction fees embedded in the e-CNY design.”

Initially, the Bank of China reportedly introduced an e-CNY airdrop program catering to the residents of the city of Chongqing, as included in the scope of a local project to bring dơn carbon emissions. 

Users receiving the airdrop are able to utilize their funds for scooter rides, food deliveries without packaged utensils, recyclable shopping bags and tickets to public transport. 

More than 4,567,000 merchants throughout the nation now added e-CNY to their list of viable payment payment instrument, in line with the nation’s strategy to stimulate and digitize the economy, via the assistance of emerging technologies like blockchain.