Shenzhen To Give Away 10 Million Digital Yuan

China is currently promoting its central bank digital currency (CBDC) with a public $1.5 million giveaway. Reports emerged that Shenzhen city is launching a pilot program that will promote the digital yuan with a public giveaway.

Shenzhen and the country’s central bank are planning to distribute up to 10 million digital yuan ($1.5 million) according to Sina Finance reports October 9. The reports further highlighted that the pilot giveaway will be funded by Shenzhen’s Luohu District.

That giveaway money will be allegedly distributed to up to 50,000 recipients via a lottery. Now, the Shenzhen residents are encouraged to start applying online for a chance to participate in the giveaway on October 9.

Every ‘gift’ will be worth some 200 renminbi. Official reports state that these gifts can be spent between October 12 and October 18 at any of the 3,389 merchants operating in Shenzhen’s Luohu District.

The rules of use state that the gift money cannot be transferred to any other individual or redeemed in one’s bank account. The unused amount will be taken back from the winners after October 18 if it is not spent.

This new pilot is part of the Chinese government’s plans to promote its digital yuan to the public. Also, referred to as the digital currency electronic payment, DCEP, the digital yuan project that was piloted in China in April 2020. As reported previously, it is currently being tested in nine cities, including Guangzhou, Macau, Shenzhen, and Hong Kong.

China’s CBDC pilots appear to be progressing apace. Fan Yifei, PBoC’s deputy governor on October 5 said that DCEP wallets have already processed 1.1 billion renminbi ($162 million) in transactions between April and August this year. China’s central bank launched 113,300 personal digital wallets and 8,859 corporate digital wallets within the digital yuan project, according to the official.