China’s capital, Shenzhen, is launching a pilot program to market the digital yuan through public donations.
In cooperation with the country’s central bank, Shenzhen plans to distribute a total of 10 million yuan ($ 1.5 million), the digital currency to China’s central bank, the local news agency Sina Finance reported on October 9.
The pilot project will reportedly be funded by donations from the Luohu District of Shenzhen. The donation money will reportedly be distributed to 50,000 recipients through a lottery. Residents of Shenzhen can apply online to enter the draw on October 9.
According to the report, each “gift” will cost 200 yuan and can be used from October 12 to 18 at one of the 3,389 merchants in the Luohu District of Shenzhen. According to the rules of use, gift money can not be transferred to another person or returned to his own bank account, the message states. It is reported that the unused amount will be refunded to the winners after October 18 if not used.
The new beta is part of the Chinese government’s plans to market the digital yuan to the public. This is also known as Digital Currency Electronic Payment or DCEP. This is a digital yuan project that was piloted in China in April 2020. It is currently being tested in nine cities, including Shenzhen and Guangzhou, as well as Hong Kong and Macau, according to the Cointelegraph.
CBDC pilots in China appear to be developing rapidly. On October 5, the Deputy Governor of the People’s Bank of China Fan Yifei announced that the DCEP’s governor had processed 1.1 billion yuan ($ 162 million) in transactions between April and August 2020. The Chinese central bank has unveiled 113,300 personal digital data, the official said. wallets and 8859 digital wallets for companies through the Digital Yuan initiative.