Chinese government to distribute $3 million in new test with their digital yuan
The government of China will distribute around $3 million (¥20 million) in another test of the digital yuan that will take place in the cities of Shanghai and Suzhou between the 16th and 29th of this month. This time, the institution will draw 500,000 red envelopes, as the draw in China is called, which can be used in thousands of partner stores in the project, published the local website People.
To receive the 20 Yuan benefit (about US$3), Shanghai and Suzhou residents must enter the lottery between Aug 6 and Aug 12 via a designated campaign page on the JD.com. for the draw that takes place between August 13th and 16th.
“The digital yuan helps increase the efficiency and security of the payments system, provides the public with a new form of general payments, and further enhances the ability of finance to respond to the real economy and expand financial inclusion,” said the official, according to the Bank News website that echoed the event.
In the previous test of China’s digital currency, around $6 million were distributed to 200,000 citizens of the capital Beijing. At that time, the Chinese government had already carried out five similar actions. The starting point of the tests was in Shenzhen, in October of last year, where the government distributed around US$ 1.5 million to 50,000 residents.
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Then came Suzhou and other cities. Shenzhen and Suzhou each conducted three donation campaigns. In total, at least US$36 million for 230 million yuan has already been distributed in the regions.
With the end of pilot tests of the digital yuan, the currency will enter a phase of great challenge, as the Chinese government wants the currency to be operational as early as February next year, when the Winter Olympic Games will take place in Beijing.
One of the priorities in the tests to receive a large number of people is already being achieved in both Beijing and Suzhou, where subway fares can already be paid for using the new currency.