Shenzhen is conducting its third test on Digital Yuan
Authorities in the Chinese city will distribute 20 million digital yuan to residents
Pilot programs for widespread adoption of China's central bank digital currencу, known as DC/EP or the digital уuan, have not stopped.
According to Xinhuanet, authorities in Shenzhen, China, will distribute 20 million digital yuan (about $3.1m, €2.5m, £2.2m) through a lottery to residents as part of a new pilot program to promote the use of a new form of currency. The trial will be the third since October 2020.
Shenzhen residents can receive 200 yuan worth of digital currency in “red envelopes” through a lottery. Red envelopes are a common way of gifting cash in China on special holidays or occasions such as weddings.
According to the Chinese agency, the groups eligible to participate in the lottery are merchants and firms’ employees who have social insurance, provided they are in town during the forthcoming Lunar New Year holiday, also known as the Spring Festival.
Over 3,500 retail outlets will provide the lottery winners with the opportunity to pay for purchases using digital wallets between February 1 and 9.
In October 2020, Shenzhen conducted its first digital yuan distribution to the public. A total of 10 million digital yuan ($1.5m) was awarded to the winners.
In the first half of January 2021, Shenzhen conducted the second test of the digital yuan, distributing 20 million digital yuan ($3m) to the lottery winners. From January 7 to 17, lottery winners had to spend the money in any of a choice of 10,000 retail stores.
China also plans to use digital yuan in Beijing during the 2022 Winter Olympics.
Elsewhere, on January 11, 2021, the Agricultural Bank of China deployed ATMs in the streets of Shenzhen for the transfer of digital yuan.