China Debuts Solar Power Industry Digital Yuan Smart Contracts
A Chinese power provider says it has completed the first digital yuan smart contract transaction in the solar power industry.
Per the Yangtse Evening Post (via Sohu), the State Grid Suzhou Power Supply Company struck the CBDC contract with the materials and textiles firm Suzhou Shicheng Material Technology.
The power provider is the local arm of the State Grid, the Chinese state-owned electric utility corporation.
The materials firm had struck a smart contract loan-type financing deal with a local bank branch.
After the company used electricity over an agreed period, the provider issued a bill, causing the contract to close.
The company’s digital yuan wallet was automatically debited after the issuance of the bill.
The media outlet claimed the development allowed for “precise loan repayments,” and heralded the advent of solar power provision “based on smart contracts.”
The firms claimed that this marked “another breakthrough in the photovoltaic settlement and supply chain financing” industries.
Suzhou, in Jiangsu Province, was one of the first major Chinese cities to join the digital yuan pilot.
In August last year, the company announced the launch of CBDC-powered supply chain financing services.
The firm says it wants to help “small and medium-sized enterprises” both “upstream and downstream of the power grid industry chain.”
And it says its solutions will help “small and micro enterprises alleviate problems caused by difficult and expensive financing.”
The energy provider also claims that its solution is attractive for banks, other financial institutions, and lenders, as it reduces “risk.”
The power provider is now working on a solar power industry-specific smart contract solution with China Merchants Bank.
The solution involves
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