China Reveals Its Digital Yuan Distribution Plan In Form Of Public Giveaways.

The renowned Chinese city of Shenzhen has revealed its pilot program to market the digital yuan with a public giveaway.

Working in partnership with the country’s central bank, Shenzhen is getting ready to distribute 10 Mln digital yuan [around $1.5 Mln] — China’s CBDC, native press agency Sina Finance reported.

According to the report, the giveaway pilot is going to be funded by Shenzhen’s Luohu District. The giveaway money will be reportedly distributed to 50k recipients via a lottery. Shenzhen residents can start applying online to participate in the giveaway recently on 9th Oct.

As per the report, each “gift” will be worth 200 renminbi and might be spent ranging from 12th Oct. and 18th Oct. at any of 3,389 merchants in Shenzhen’s Luohu District. Consistent with the principles of use, the gift money can’t be transferred to other individuals or redeemed in one’s personal account, the report adds. The unused amount will be reportedly taken back from the winners after 18th Oct. if it’s not spent.

The new pilot is a scheme of the Chinese government’s plans to market the digital yuan within the general public. Also referred to as the digital currency electronic payment, or DCEP, the digital yuan project piloted in China in April 2020. As reported earlier, it’s presently being tested within 9 cities along with Shenzhen, Guangzhou, as well as Hong Kong and Macau.

China’s CBDC pilots seem to be progressing apace. Earlier on 5th Oct., PBoC’s deputy governor Fan Yifei revealed that DCEP wallets processed around $162 Mln in transactions between April and August 2020. Consistent with the official, China’s central bank opened 113,300 personal digital wallets as well as 8,859 corporate digital wallets within the digital yuan initiative.

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