Fuzhou's 119 educational training institutions integrate Digital RMB smart contracts

(Source: Digital Currency Fiat Research Society)

Mobile Payment Network News: Prepaying tuition only to have it wasted, institutions running off and making rights protection difficult—these were once major concerns for many parents. Now, leveraging digital RMB smart contracts, Fuzhou has built an end-to-end prepaid-fee supervision and oversight system to address, at the source, persistent problems in the education and training sector. Recently, a reporter learned from the People’s Bank of China Fujian Branch that under its overall coordination, the Fuzhou Municipal Education Bureau and the municipal financial affairs office of the CPC Fuzhou Municipal Committee, together with multiple digital RMB operating institutions, have jointly launched an innovative prepaid education and training supervision application. As of now, all 119 off-campus training institutions across Fuzhou have completed pilot implementation, with coverage of subject-based programs reaching 81%. In seven counties (cities/districts), including Changle, Jin’an, Fuqing, and Minhou, subject-based institutions have taken the lead in achieving 100% full coverage, making parents’ payments more reassuring and refunds smoother.

As it turns out, a digital RMB smart contract is like an “electronic contract butler” that automatically executes. After parents pay, the funds enter a digital RMB wallet that has a smart contract loaded into it; the funds are automatically managed by the pre-set “smart contract” rules, providing three core safeguards.

Release during the fee stage. Following a “one lesson, one redemption” schedule, funds are released to the training institutions in phases to avoid the risk of large amounts of money being provided all at once.

Automatic refund in case of default. If an institution suspends classes, breaches terms, or similar issues occur, the smart contract will automatically initiate the refund protection process, sparing parents the trouble of repeated negotiations.

Traceable flows end to end. The destination of every single payment can be clearly traced in the digital RMB App’s “Yuan Butler” module, making fund security visible and controllable.

“Before, when registering for classes, I always worried and felt uneasy. Now the money is in my own hands, and I feel much more at ease.” Ms. Chen, a resident, shared her refund experience with reporters. Not long ago, she used the “Yuan Butler” service in the digital RMB App to purchase 15 English course sessions for her child with a prepaid amount of 1,800 yuan. After the child completed five lessons, the institution closed and suspended operations due to cash flow problems.

Upon learning of the situation, Ms. Chen immediately filed a refund request in the digital RMB App. Based on the smart contract, the system automatically calculated the fees for the remaining 10 lessons; the 1,200-yuan balance was returned instantly to the original route, with no need for offline communication or waiting for complaints throughout. “Compared with before, rights protection used to take at least weeks and sometimes months. Now it’s solved with a few finger taps—technology truly protects our wallets.” Ms. Chen said.

“Connecting smart contract supervision is both a constraint and an empowerment.” A person in charge of a training institution in Gulou District, Fuzhou said that in the past, parents hesitated to sign up because they feared payment-related risks. Now, with supervision made more transparent, trust has improved significantly, and the course registration-to-conversion rate has increased noticeably. At the same time, standardized fund management also forces institutions to improve teaching quality and service levels, helping the industry shift from “expansion driven by prepaid fees” to “reputation-based operations” and achieve sound development.

When paying fees to enroll in classes, how should people use digital RMB smart contracts? Residents can conveniently use smart contract services through the digital RMB App. When paying, make sure to use the smart contract payment channel. For institutions that have already connected to the smart contract system, payment can be made through the digital RMB App’s “Yuan Butler” module or through the smart contract platform of a digital RMB operating institution (bank), allowing users to enjoy phased supervision of funds and payment discounts provided jointly by some training institutions and banks.

Taking the digital RMB App’s “Yuan Butler” module as an example: consumers can log into the digital RMB App and, in 【Services】 - 【Yuan Butler】 - 【Education and Training】, click the corresponding institution to enter and purchase a course bundle, enjoying smart contract services.

If you need to refund a card, consumers can apply in the digital RMB App under 【Services】 - 【Yuan Butler】 - (bottom right) 【My】 - select the card - 【More】 - 【Apply for Refund】.

Currently, institutions including the Postal Savings Bank of China’s Fujian Branch have also launched “pay-and-save” discounts for prepaid education and training fees—up to an additional reduction of 200 yuan. Parents can check the details via the banks’ official WeChat accounts. (Source: Fuzhou News)

Appendix: List of education and training institutions connected to digital RMB smart contracts

A wealth of information and precise interpretation—right on the Sina Finance App