Jujutsu Kaisen is a series that draws considerable inspiration from Japanese folklore, which is fitting given that it's set in the country. Therefore, fans overseas may not understand some of its references. This is exemplified during the Shibuya Incident arc when Mei Mei fights the Smallpox Deity, which has an entertaining story in the series.
Jujutsu Kaisen author Gege Akutami eventually revealed in the extra content of one of the volumes that this Curse is based on the actual disease, as it is something that human beings have managed to contain. Kenjaku gave this Curse its name due to the Amazake Babā tale, which is a yokai that, according to legend, could cause smallpox.
Disclaimer: This article is a speculative theory and reflects the writer's opinion.
Explaining the nod to Japanese folklore through the Smallpox Deity in Jujutsu Kaisen

During the events of the Shibuya Incident arc, Kenjaku confronted Mei Mei, during which she summoned the Smallpox Deity, which then revealed that the villain had only named it so that it sounded more menacing. However, Mei Mei managed to see through this, although the history behind this relatively uneventful Curse by author Gege Akutami has more than meets the eye.
In one of the manga volumes, Akutami explains that the reason smallpox was chosen for a Curse is that he didn't want to select diseases that were still a problem in human society out of respect for those who suffer from them. However, there is also the legendary tale of a yokai in Japanese folklore named Amazake Babā, which could have been another inspiration for this Curse.
After all, this was a yokai that would visit people at their homes and ask for alcohol, giving smallpox to those who opened their doors. This could fit with the lore of this battle shonen manga and provide more substance to an insignificant enemy for Mei Mei to fight.
The role of this character in the series

As mentioned earlier, the Smallpox Deity doesn't have much of a role to play in Jujutsu Kaisen. It is only Kenjaku's way of delaying Mei Mei during the Shibuya Incident arc. In that regard, this portion of the manga is a relatively minor moment where Mei Mei gets to shine as a sorcerer, especially when it comes to the way Ui Ui works as her support.
On the other hand, perhaps more in a narrative sense, it was during this period of the arc that fans got to see Mei Mei's selfish nature toward her brother Ui Ui, which would later lead to her abandoning her fellow sorcerers. Therefore, this Curse may serve as a way to give this sorcerer more characterization.
Final thoughts
All in all, the Smallpox Deity is a very irrelevant Curse in Jujutsu Kaisen, but it reveals some of Akutami's thought process when it comes to generating ideas. Moreover, the possible connection to Japanese folklore is always a welcome addition.
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