To promote the recently introduced digital Yuan, the govt will issue 20 million ($3.1 million) of it (digital Yuan) in Shenzhen city via lottery as a pilot program. It’s the third time that a digital yuan is being issued in Shenzhen, in “red envelops” via random draw. The award value at 200 yuan for each winner.
In early October and January, almost 10 million and 20 million yuan were respectively distributed.
On Wednesday registration will be opened for employees of enterprises and individual businesses who stay in Longhua district of Shenzhen during the spring festival.
Random draw winner will download a phone app to use digital currency and can shop over 3,500 allocate businesses with digital currency transactions. Also in December as a pilot program, 20 million digital yuan were issued by Suzhou city. The central bank, the People’s Bank of China (PBOC) will issue a digital currency to commercial banks which will next assign it to the people.
Blockchain-based cryptocurrencies are shaping the nature of nations’ fiat currencies. With the immense increase in prices of Bitcoin, Ethereum, and many other cryptocurrencies, some policymakers are calling for global regulations. While at the same time many other nations and even institutions are looking towards the idea of national digital currency and the use of a stable coin to facilitate fast transactions.
The European central bank (ECB) and the European Commission are exploring the feasibility to launch Digital Euro to meet the growing needs of the eurozone.