China is distributing over $ 40 million in digital yuan in red envelopes
China continues the most advanced digital currency project among the top countries, having distributed more than $ 40 million in digital yuan in red envelopes. The CBDC funding campaign is currently focusing on 5 major cities, taking into account their regional development priorities.
China is distributing more than $ 40 million in digital yuan in red envelopes
The Chinese authorities are making rapid progress in piloting a digital yuan, a central bank digital currency (CBDC) issued by the People’s Bank of China. Since the concept was announced in 2014, the project has entered its seventh year of development with large-scale trials on the continent and cross-border trials with Hong Kong.
The “Red Envelope” campaign launched to distribute the digital yuan to Chinese consumers is expanding. According to a report by the Tuoluo Research Institute, the amount distributed to Chinese citizens in red digital yuan envelopes exceeds 269 million yuan, or about $ 41.5 million.
According to Chinese tradition, red envelopes are small packages of money that are usually given to children, family members, friends or co-workers and to wish good luck. In China, red is a symbol of energy and happiness.
The article published by Chinese crypto news site 8btc shows that the government’s efforts are currently focused on five major cities – Shenzhen, Suzhou, Beijing, Chengdu and Shanghai. The authorities there issued red envelopes containing digital yuan for a total of 230 million yuan, or $ 35 million.
China is accelerating and expanding digital yuan advertising
The report notes that the central government “takes into account regional development strategies and the frequency and scope of accelerated outdoor advertising”. For example, in Beijing, where local financial authorities recently announced a $ 40 million ($ 6.3 million) digital yuan lottery, a digital yuan program. The number is mostly focused on the upcoming Winter Olympics.
Select retailers in the Wangfujing business district and online marketplace JD.com have started accepting digital yuan payments. The second pilot project will then focus more on the food, housing, transportation, tourism, shopping, entertainment and information scenes of the Beijing 2022 Winter Olympics.
Meanwhile, the Shenzhen Economic and Financial Center distributed 60 million yuan in digital red yuan envelopes (over $ 9 million). The application scenarios of the CBDC gradually encompass government issues such as healthcare, education, transportation and consumption. More than 30,000 merchants in the city are currently working to support payments in digital yuan.
So far, Chengdu has distributed 40 million digital yuan (over $ 6 million). At least 11,000 dealers are taking part in the pilot project. They come from a wide variety of industries including hospitality, retail, and entertainment. Chengdu has also implemented a digital yuan system on the public transportation system in the city’s administrative area. Tuoluo noted that Chengdu’s Red Envelope Program “emphasizes the characteristics of digital currencies – low-value transactions, high-frequency transactions, and inclusive financing.”
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