China has just seen the launch of its first consumer prepayments platform that makes use of Chinese central bank digital currency (CBDC), often referred to as the digital renminbi.
The platform was launched on 6 May in the Shenzhen district of Futian by the local branch of China Construction Bank (CCB), and will be trialled first for payments in the education and training sector.
The platform makes use of digital renminbi smart contracts to resolve problems in relation to prepayments, including difficulty in the termination and repayment of fees, the pursuit of compensation in the case of suspension of operations, and other protections of consumer rights.
When consumers use the renminbi to make payments via the platform, the prepayment sum can be “frozen” in their digital renminbi wallets, and payments subsequently made in increments based upon their actual usage of classes and training programs.
