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Digital Yuan Helps Boost Festivities

Following winning a prize in Beijing’s lottery-based digital Yuan program; Tao Siyu wasn’t able to remain to wait to be invited by his buddies for a festive celebration.

As Tao picks the bill using the lucky money, he said that,

“I didn’t win a digital RMB red envelope in February, and I felt sad for missing a chance to experience the new payment system. Once I got notified as a winner this time, I invited my friends to dine and share the joy.”

In the freshest city trial run of China’s digital legal tender, Beijing, with a community of around 22 million, allocated 40 million yuan (approximately $6.25 million) in digital yuan to customers; A full 200,000 digital red envelopes holding 200 yuan.

Chinese starts to get busy during the Dragon Boat Festival holiday

The lucky draw results were published on June 11, the eve of the three-day Dragon Boat Festival holiday, when authorities anticipated a trip and spending boom. In addition, the digital yuan can be used as payment in nearly 2,000 businesses around Beijing.

The winners from the lottery would need to download the mobile application of the digital RMB to get the online wallets. Afterward, they should spend the money from 9 am on June 11 through June 20.

Red Envelopes or Hongbao

In February, Beijing started with 10 million yuan worth of digital yuan giveaways to residents to promote expenditure during the Spring Festival holiday. Authorities also distributed these giveaways through a lottery of virtual red envelopes, or “hongbao,” a traditional Chinese gift money practice.

Digital yuan hongbaos

An increasing number of customers are joining the digital yuan, which promises to make daily life easier and digital payment more secure.

Shanghai dispensed 350,000 virtual “hongbaos” before the Dragon Boat Festival. Ding, a student from Donghua University; stated that he and his roommates all won a hongbao and checked it out in the city’s bustling commercial areas.

Ding mentioned,

“I saw many people ask if digital RMB payment could get special discounts.”

In Shanghai’s ancient town of Zhujiajiao, a prominent tourist destination, stores have set up signs saying “Pay with Digital RMB.”

A merchant surnamed Pan said she could sell up to 4,000 Zongzi a day during the Dragon Boat Festival holiday. Many of the orders were paid via digital yuan that is accessible and doesn’t include transaction fees.

Digital Yuan’s Role For The Middle Kingdom

China’s goal is to enhance its local retail method by evolving its digital currency. Gradually will expand its use via trials, according to the country’s monetary authorities and experts.

The middle kingdom started piloting its digital currency in selected regions at the end of 2019. After that, the central bank will issue the currency as a replacement for actual physical money.

Throughout the pilot programs in cities, including Beijing, Shenzhen, and Suzhou, businesses such as groceries, daily necessities, and catering have already started to accept digital yuan payments.

As the digital RMB trial extends its range in public life, China is anticipated to enhance its operational experience to lead the way for comprehensive adoption in small-scale and high-frequency retail business scenarios, experts say.

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