China’s Digital Yuan White Paper Reveals CBDC Uses Smart Contract

Bingbon Chart

Source: TradingView& Bingbon

Bitcoin has been grinding lower in a trading range above $30,000, with  BTC’s price roughly halved from a record high dating three months ago. Apparently, $30,000 is a key support point, since Bitcoin bounced to approximately $31,300 after touching a 2-week low yesterday near $31,000. The downward slope which materialized over the last few days gives the appearance that bears are willing to retest the lower support at $20,000. Current levels are key when it comes to the daily close. BTC needs to reclaim $32,500 as support if it hopes to maintain the upward trend structure. Today’s rally is very weak unless BTC breaks through the resistance at $32,500.

Today’s Headline

The People’s Bank of China (PBOC), China’s central bank, has released a white paper on its oncoming central bank digital currency (CBDC), also known as the digital yuan or e-CNY. Notably, the document revealed that the project adopts smart contract features for programmability. These contracts will allow self-executing funds which can be carried out primarily based on predefined situations agreed upon between two sides. The e-CNY obtains programmability from deploying smart contracts that don’t impair its monetary functions. Under the premise of security and compliance, this feature enables self-executing payments according to predefined conditions or terms agreed between two sides, so as to promote business model innovation.