To promote the digital Yuan, the Chinese city of Shenzhen will give away 10 million Yuan ($1.5 million) to residents as a public promotional gift. Recipients will be able to use their digital Yuan in 3,389 stores starting next week.
The Chinese city of Shenzhen has decided to give away a total of 10 million Yuan ($1.5 million) in the digital currency of the Chinese central bank (CBDC) to 50,000 residents. This is part of the digital Yuan pilot program that is being implemented in several major cities in China, including Shenzhen, Guangzhou, Hong Kong and Macau. The city's goal is to give away some of the currency to increase the use of the new government-supported digital currency. Shenzhen, known as a shopping destination, is a modern metropolis in South-Eastern China that connects Hong Kong with mainland China.
Distribution through lottery raffle
The digital Yuan gift will be distributed by a lottery in the Luohu district of Shenzhen. Each "red packet" is worth about 200 Renminbi. Red packets are gift envelopes traditionally used in China to give away money on holidays and special occasions.
People living in Shenzhen can register for the lottery starting on Friday through iShenzhen, a blockchain service operated by the Shenzhen government. The winners of the lottery will be announced on Sunday, according to a statement by the Shenzhen government. You will then receive a link to open a digital wallet.
For personal use only
The red packets with digital Yuan in them can be used from October 12 to 18 in 3,389 designated stores in the Luohu district. These include gas stations, Walmart stores, Vanguard shopping centers and in the luxury Shangri-La hotel chain. According to the official rules of the Terms of Use, the gift money may not be transferred to another person, or redeemed in your own bank account. Money not spent will be taken back on October 18.
According to the South China Morning Post, Liao Qun (the Chief Economist of China Citic Bank International), believes that this gift will increase the use of digital currency to some extent. The chief economist of Hang Seng Bank (China), Dan Wang, agrees, and explains that each Yuan given away is likely to generate more sales, citing the multiplier effect.
People's Bank of China (PBOC) Deputy Governor Fan Yifei recently revealed that the digital Yuan has already been used in 3.13 million transactions worth about 1.1 billion Yuan. In addition, the government in Shenzhen recently rewarded some 5,000 medical and healthcare workers dealing with the Covid-19 pandemic with the digital Yuan.
