Cryptocurrency, News & Updates

China Planning For A Big CBDC Giveaway Worth $6.2 Million

  • China is looking to drive forward the CBDC utilization throughout the upcoming 2022 Beijing Winter Olympics.
  • In the recent CBDC pilot projects, Beijing’s community can participate in the lottery by applying using banking apps.

China is now planning for a big CBDC giveaway for its Beijing residents. This was after conducting a test with its Digital Renminbi use in some small cities. The Chinese government has prepared a 40 million renminbi ($6.2 million) lottery giveaway in the form of digital currency.

China has been leading such programs for a while as it tests the CBDC acceptance among its population. For the distribution of its CBDC, the government has also collaborated with some of the most prominent financial players like Ant Financial.

Beijing residents can use two major banking apps and win one of 200,000 so-called red packets to apply for the current lottery. As per the information provided by the Beijing Local Financial Supervision and Administration Bureau, each of these packets will have 200 yuan or $31, which the locals can spend with selected merchants. The deadline for this application is June 7, reports CNBC.

Bank employee assisting clients how to use Bank app for digital yuan transactions

We can assume that the Chinese central bank is moving one step closer to its nationwide launch of the CBDC. In April 2021, PBoC deputy governor Li Bo noted that the central bank would possibly expand the scope of its digital currency pilot projects. The Chinese central bank has been keen to introduce the CBDC during the 2022 Beijing Winter Olympics.

Earlier this year, in February 2021, China directed a similar exercise in Chengdu City. The central bank distributed over 40.2 million in the Digital Yuan lottery.

China Drives CBDCs

The middle kingdom has been a primary participant in the CBDC race and intends to lead over other powerful economies. There have been some talks that China’s CBDC development could potentially threaten the dominance of U.S. Dollars in international markets.

Clarifying this matter, PBOC Deputy Governor Li said that the PBoC has no such plans. He stated that:

“For the internationalization of renminbi, we have said many times that it’s a natural process and our goal is not to replace (the) U.S. dollar or any other international currency. I think our goal is to allow the market to choose and to facilitate international trade and investment.”

Even the U.S. has started taking CBDC developments seriously. Fed Chairman Jerome Powell recently stated that the U.S. central bank would release the research paper on Digital Dollar by this summer.

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