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According to reports, Mu Changchun, director of the Digital Currency Research Institute of the People\’s Bank of China, has written an article titled \”Smart Contracts and Digital RM

#Table of Contents

According to reports, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, has written an article titled “Smart Contracts and Digital RMB”, in which the smart contract ecosystem of digital RMB should be built in accordance with four directions and principles: first, adhere to centralized management and a two-level operational architecture. The second is to ensure the legality and validity of the contract template. Third, adhere to openness and open source. Fourth, continue to upgrade technology and prevent technical risks.

Mu Changchun, Director of the Digital Research Institute of the People’s Bank of China: The digital RMB smart contract ecosystem should adhere to openness and open source

1. Introduction
2. Centralized Management and Two-Level Operational Architecture
3. Legality and Validity of Contract Templates
4. Openness and Open Source
5. Continuous Technological Upgrades and Risk Prevention
6. Conclusion
7. FAQs

Introduction

In recent years, digital currencies, such as Bitcoin and Ethereum, have gained increasing popularity around the world. The People’s Bank of China has been working on developing a digital version of the Chinese yuan, known as the digital RMB. Mu Changchun, the director of the Digital Currency Research Institute of the People’s Bank of China, has written an article that discusses the importance of building a smart contract ecosystem for digital RMB.

Centralized Management and Two-Level Operational Architecture

According to Changchun, the first direction and principle for building a smart contract ecosystem for digital RMB is to adhere to centralized management and a two-level operational architecture. This means that the digital RMB will be under the centralized leadership of the People’s Bank of China, and the operational framework will be divided into two levels: the central bank and commercial banks.

Legality and Validity of Contract Templates

The second direction and principle is to ensure the legality and validity of the contract template. To achieve this, the digital RMB’s smart contract ecosystem will rely on legal and technological means to verify and ensure that the contract templates are legally valid.

Openness and Open Source

The third direction and principle for building a smart contract ecosystem for digital RMB is to adhere to openness and open source. By doing so, the People’s Bank of China aims to promote transparency and increase the level of collaboration between different parties.

Continuous Technological Upgrades and Risk Prevention

The fourth direction and principle for building a smart contract ecosystem for digital RMB is to continuously upgrade technology and prevent technical risks. This means that the digital RMB’s smart contract ecosystem will keep pace with technological advancements to ensure the security and stability of the system.

Conclusion

In conclusion, Mu Changchun’s article highlights the importance of building a smart contract ecosystem for digital RMB. By adhering to principles like centralized management, legality and validity, openness and open source, and continuous technological upgrades, the People’s Bank of China aims to create a secure and stable system for the digital RMB.

FAQs

Q1: What is the digital RMB?

The digital RMB is a digital version of the Chinese yuan being developed by the People’s Bank of China.

Q2: What are smart contracts?

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.

Q3: How will the digital RMB affect China’s economy?

The digital RMB has the potential to increase financial inclusion, reduce transaction costs, and provide more transparency in transactions. However, its impact on China’s economy is currently uncertain.

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