As part of government efforts to advance the digital yuan, Shanghai officials will distribute $3 million worth of central bank-issued currency among residents of Shanghai. The digital money would be dispensed through a lottery, a method that has been implemented elsewhere in China.
Lottery winners will receive 350,000 digital red envelopes
The city of Shanghai is going to give 19.25 million yuan, or about $3 million, in digital currency. State-run Xinhua news agency quoted Shanghai Municipality as saying that the money would be distributed among local consumers through a lottery system.
Lottery winners will receive a total of 350,000 digital red envelopes. Each of them will be loaded with 55 units of the Chinese central bank digital currency (CBDC), the municipal information office announced on Friday through its official WeChat account.
In Chinese tradition, red envelopes are usually small packets with money given to children, family members, friends, and employees as a wish for good luck. In China, the color red is also considered a symbol of energy and happiness.
Shanghai authorities have invited individual consumers to sign up for a lottery. They can do this through the official WeChat accounts of the local branch of the Industrial and Commercial Bank of China and the cloud service of the Bank of Communications in Shanghai. The registration window will be open from 5 – 6 June.
Shanghai joins the list of cities testing the digital yuan
As one of four directly administered municipalities in China, Shanghai is governed by the State Council of the People’s Republic. The Chinese government is moving forward with the implementation of its Digital Currency Electronic Payment (DCEP) system, as digital yuan The infrastructure is officially called. It has already given out millions of dollars worth of Chinese digital currency.
Similar trials have been launched in several other Chinese cities, including the capital Beijinghandjob shenzhen, Chengdu, and Suzhou. Residents receiving the handout are free to spend funds at merchants that already accept digital currency issued by the People’s Bank of China (PBOC)
Media reports However, the U.S. has suggested that Chinese citizens have been reluctant to participate in the trials due to various concerns related to privacy and government surveillance. Many are also hesitant to switch from popular mobile payment apps such as those offered by platforms such as WeChat and Alipay.
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