Digital Renminbi Used for Solar Energy Smart Contracts in Xiong’an New District

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The Xiong’an New District of Hebei province is pioneering the use of the digital renminbi for solar power smart contracts.

The digital-renminbi driven smart contracts enable power companies to make payments to equipment leasing companies following settlement of photovoltaic revenues with customers.

The remaining income is then fully shared with rural households where photovoltaic installations are situated, in move which State Grid says raises settlement efficiency and averts capital recovery risk for financial institutions.

The scheme was jointly developed by the Beijing and Hebei branches of Industrial and Commercial Bank of China, in conjunction with local subsidiaries of State Grid in Xiong’an New District and Hebei province.