For more than seven years, China’s central bank digital currency (CBDC), the Digital Yuan, has been in development. The project has passed a critical test and is now available for Chinese citizens to utilize.
According to a report by CNBC, China will distribute roughly $6.2 million in its digital currency to lucky residents of Beijing. The CBDC beneficiaries will be chosen through a lottery.
Participants must first download two of the banking applications in order to register and enter the competition. The deadline for registration is June 7th.
According to the report, those who are chosen in the lottery will receive one of the 200,000 “red packages.” These envelopes contain $31 (about 200 yuan) in order to be used at specific stores. The People’s Bank of China (PBOC) has been using the same technique to test CBDC in other parts of the country.
Caixin reported on May 11, 2021 that Alibaba’s online grocery service and food delivery divisions, including the ele.me food delivery system, Tmall supermarket, and Hema grocery outlets, are included in China’s digital yuan test program. Users of these platforms may notice a “digital yuan” payment option among their options. This gives the sovereign digital currency access to one billion consumers.