Twenty million yuan ($3 million) in China’s central digital bank currency will be awarded to 100,000 people in the country’s largest digital yuan test to date. The digital currency will be accepted by 100,000 stores, including JD.com, one of China’s largest online shop sites.
Giveaway $3 Million in Digital Yuan
The Chinese city of Suzhou, located west of Shanghai, is reportedly preparing to receive 20 million yuan in the nation’s central bank digital currency (CBDC) to 100,000 residents, according to a statement posted Friday by the Suzhou city government. The digital yuan is officially known as Digital Currency Electronic Payment (DCEP). The South China Morning Post details:
A total of 100,000 digital red red packets, each containing 200 yuan, will be distributed to residents on December 11, the night of the so-called Double Twelve shopping festival. They will be valid until December 27.
“Any Chinese national living in the eastern city can register for the lottery through Suzhoudao, the city’s official public service app,” the publication added. Lottery winners will receive red red packets via the official Renminbi Digital App.
Several hundred recipients of the digital yuan gift will also be the first to use what the central bank, the People’s Bank of China (PBOC), calls a “dual offline wallet”. This allows them to use digital yuan to pay for goods in stores without having to be connected to the internet, “effectively replacing banknotes and coins with digital yuan,” the news outlet said.
About 10,000 shops will take part in the Suzhou digital yuan trial. This includes JD.com which claims to be the largest online shop in China. The company announced on Saturday that it had become China’s first online platform to accept a PBOC-backed digital currency, Reuters reported. JD.com’s fintech arm, JD Digits, will accept digital yuan as payment for some products at its online mall, a post detailed on the company’s official WeChat account details.
Suzhou digital yuan airdrop held a similar giveaway in Shenzhen where the first large-scale public trial of the PBOC-backed digital currency took place in October. Ten million yuan was disbursed via airdrop to 50,000 Shenzhen residents and 3,389 participating shops.