Car Buyers in China Now Can Pre-Pay with Digital Yuan Smart Contracts
The Chinese city of Shenzhen has implemented digital yuan smart contracts for car pre-payments, a collaboration with the Agricultural Bank of China.
According to the local newspaper Jing Bao, the first batch of consumers successfully purchased new automobiles with digital yuan-powered smart contracts in early February. The Pingshan District Administration for Market Regulation partnered with the Bank to launch the pilot pre-pay program.
Mr. Wang, one of the first consumers, purchased his new car at the Haodi Automobile Dealership and Service Center. The whole transaction was completed on the digital yuan platform launched by the Bank’s Shenzhen branch.
This system would enable customers to pre-pay for cars using digital yuan, automating the contract and payment process. The funds will get released upon vehicle delivery, aiming to safeguard buyers’ deposits and streamline the purchase experience.
According to Wang, consumers could naturally feel worried as they commit a large amount of money to car purchase before they can receive the order. Making the deposit at a dealership that supports e-CNY pre-payment can reduce the consumers’ anxiety.
In addition, Pingshan District, where the Haodi Dealership was based in, introduced a “Pre-Pay Carefree Zone.”
Around 50% of the vendors which utilize pre-payments and deposits have embraced the central bank digital currency (CBDC) business, including restaurants, after schools, and education institutions.
The Pingshan District Administration for Market Regulation stated that the authorities will continue to collaborate with financial establishments, utilizing digital yuan’s advantage of building smart contracts.
The Administration also reinstated the importance to promote the application of
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