{"id":72032,"date":"2023-10-12T21:33:16","date_gmt":"2023-10-13T01:33:16","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/tencent-launches-e-cny-smart-contract-services\/"},"modified":"2023-10-12T21:33:19","modified_gmt":"2023-10-13T01:33:19","slug":"tencent-launches-e-cny-smart-contract-services","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=72032","title":{"rendered":"Tencent Launches e-CNY Smart Contract Services"},"content":{"rendered":"
\n

The Chinese tech titan Tencent, the WeChat operator, will launch a digital yuan smart contract offering for small and medium-sized enterprises (SMEs).<\/p>\n

The move comes weeks after the firm announced it would join a central bank-led e-CNY and global CBDC interoperability pilot.<\/p>\n

Per the Securities Times, Tencent said it will release a \u201cdigital yuan smart contract enterprise credit solution\u201d tailored for \u201csmall and micro-enterprise customers.\u201d<\/p>\n

The project is the brainchild of Tencent\u2019s online payments arm Tenpay and its WeBank online banking affiliate.<\/p>\n

Tencent said the solution had been \u201ccustomized and developed for WeBank\u2019s SME and micro-enterprise customers.\u201d<\/p>\n

And the offering will let commercial banks \u201caccurately track the whereabouts\u201d of loans and other forms of funding.<\/p>\n

The use of smart contracts means that loan-related records \u201ccannot be forged or tampered with,\u201d Tencent said.<\/p>\n

This, the firm said, will \u201chelp prevent loan funds from flowing into areas such as gambling, real estate speculation, and stock market trading\u201d<\/p>\n

Banks will be able to use the solution to boost \u201csecurity and compliance\u201d through e-CNY smart contracts, Tencent explained.<\/p>\n

And this could also help customers, the firm suggested \u2013 by allowing commercial banks to provide \u201cpreferential interest rates\u201d (due to reduced risk levels).<\/p>\n

The central People\u2019s Bank of China and its partner banks have been promoting the adoption of e-CNY smart contracts in recent months.<\/p>\n

This has been particularly the case in the worlds of green financing and corporate loans.<\/p>\n

Banks say that they can use the technology to make sure funds are not misappropriated, used in greenwashing drives, or used in a manner that contravenes issuance contracts.<\/p>\n

They claim that using the e-CNY lets them slash \u201cloan monitoring\u201d costs and provide their clients with loans faster.<\/p>\n

Tencent said its new program \u201cwill be expanded […] in the future.\u201d<\/p>\n

A consumer uses the digital yuan to pay on a POS device in a store on a video distributed by the Shanghai Pudong Development Bank.<\/p>\n

<\/oembed><\/figure>\n

Earlier this week, a group of Chinese IT and payments firms announced they would move into a new CBDC-themed \u201cdigital yuan industrial park\u201d in Shenzhen, the nation\u2019s de facto tech capital.<\/p>\n<\/p><\/div>\n