Blockchain, Cryptocurrency

Shenzhen’s Crypto-Hype: 10 Million Digital Yuan Public Giveaway

China’s southern city of Shenzhen’s launching a pilot program to promote digital yuan with a public giveaway.

In collaboration with the nation’s central bank, Shenzhen is preparing to allocate a total of 10 million digital yuan ($1.5 million) — China’s central bank digital currency, local news agency Sina Finance reports Oct. 9.

As announced, the giveaway pilot will be financed by Shenzhen’s Luohu District. The giveaway money will be reportedly distributed to 50,000 winners through a lottery. Shenzhen netizens can start applying online to participate in the giveaway on Oct. 9.

As per the report, each “gift” will be worth 200 renminbi and can be spent starting from Oct. 12 and Oct. 18 at any 3,389 merchants in Shenzhen’s Luohu District. In conformity to the rules of use, the gift money cannot be transferred to another person or redeemed in one’s bank account, the report notes. The unused amount will be reportedly taken back from winners after Oct. 18 if it is not spent.

The new pilot is part of the Chinese government’s plans to promote digital yuan to the public. They are also known as the digital currency electronic payment, or DCEP, the digital yuan project piloted in China in April 2020. It is currently being tested in nine cities, including Shenzhen, Guangzhou, Hong Kong, and Macau.

China’s CBDC pilots seem to be advancing swiftly. On Oct. 5, PBoC’s deputy governor Fan Yifei announced that DCEP wallets processed 1.1 billion renminbi ($162 million) in transactions between April and August 2020. As reported by the authorities, China’s central bank opened 113,300 personal digital wallets and 8,859 corporate digital wallets within the digital yuan initiative.

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