The programming paradigm of the digital renminbi is clearly defined: a two-tier structure of restricted and open types

Regarding the development of smart contracts for the Digital Renminbi, it has become clear that multiple programming paradigms will be adopted. According to technical personnel from the central bank, account-based smart contracts and those on public blockchains may seem similar at first glance as both are “code that executes automatically triggered by conditions,” but the difference lies in the choice of programming languages and execution methods.

Adoption of Restricted Turing Completeness Prioritizing Security Design Philosophy

Smart contracts for the Digital Renminbi are designed within a framework of restricted Turing completeness. In other words, the code that programmers can write is limited to pre-approved template scripts by the central bank, allowing only simple condition checks and automatic trigger functions.

The underlying reason for this design approach is to prioritize security and risk management. Fully Turing-complete programming languages can, in theory, implement all computable problems, but they also carry higher risks of unpredictable execution results and increased system load. To ensure stability as a financial infrastructure, a framework that allows pre-control over execution content is considered essential.

Support for Multiple Programming Languages Solidity and Other Web3 Standard Languages

On the other hand, the development of smart contracts for the Digital Renminbi is planned to support multiple programming languages, including Solidity and other Web3 standard languages. These include languages with full Turing completeness. The technical focus is on how these languages will be integrated within a standard audit mechanism and access control framework acceptable to financial systems, rather than in an unrestricted programming environment like public blockchains.

In other words, the goal is to coexist with different programming paradigms, providing flexibility suited to various use cases while also complying with financial regulations.

Integration with Financial Systems: Developing Audit and Access Standards as the Next Challenge

The biggest challenge in implementing smart contracts for the Digital Renminbi is designing audit standards and access mechanisms acceptable to the entire financial sector. In an environment where restricted and open programming paradigms coexist, it is necessary to clearly define under what conditions what level of access rights are granted, and how execution contents are monitored and recorded.

Balancing technical flexibility with regulatory requirements, and ensuring the overall stability and transparency of the financial system, is seen as the next milestone in the development of smart contracts for the Digital Renminbi.