Shenzhen residents are ready to receive $ 2.29 million worth of digital yuan as part of the Central Bank Digital Currency (CBDC) test. The Chinese government will provide 150,000 yuan to 130,000 residents in the CBDC.
This CBDC will be usable in more than 5,000 stores so no minimum purchase is required. People’s Bank of China is still testing its CBDC and as part of the test, it is handling this gift. A total of 130,000 red packets will be distributed through the lottery system using WeChat Payments.
To get the benefit of gifts for local residents, they must register before and after, a lottery system will name the winners.
The government’s move is aimed at accelerating the use of the currency, as concerns about a so-called new wave of Omicron still precede China.
Promoting CBDC’s application
According to the report, this is the first time that Digital Yuan or CBDC has issued eight pilot banks.
It has also been included in other sectors such as restaurants and supermarkets for a certain period of time.
Due to a new Omicron outbreak reported in Shenzhen, the People’s Bank of China is supposedly promoting the currency to benefit residents.
In addition to benefiting the residents, it is said to promote better implementation of the CBDC.
Following the successful launch of the CBDC (Digital Yuan) pilot program in the past, the country’s central bank, the People’s Bank of China, decided earlier this month that it wanted to expand the operation.
Through the expansion, it specifically aims to expand its pilot testing program to other indigenous cities, including Guangzhou in southern China’s Guangdong Province, Tianjin in northern China, and Chongqing Municipality in southwestern China.
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This happened earlier as part of the Digital Yuan Giveway (CBDC) test
This is not the first time that China’s central bank has issued digital yuan to Shenzhen residents. Shenzhen is one of the first pilot cities to test e-CNY (name of CBDC).
In October 2020, the Chinese government issued 10 million digital yuan for Shenzhen citizens. In that special gift, the red packets could be used in less than 5,000 stores, the number being just over 3,000 stores.
These stores were designated and were confined to the Luohu District only.
In addition to Shenzhen, Digital Yuan is currently being tested in six cities: Shanghai, Suzhou, Jiangxi, Chengdu, Hainan, Changsha, Xian, Qingdao, Dalian, Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen and Zhejiang. The province will host the 2022 Asian Games in September.
In addition to these, the test will be extended to other indigenous cities discussed above.
According to data from the Central Bank of China, the digital yuan needed by 2021 had about 260 million unique users. It is alleged that more than 87 billion yuan was transacted through e-CNY.
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