Shanghai to distribute USD3 million worth of digital yuan through red envelope

June 4, 2021 9:25 pm

China is pushing forward its digital yuan trails with the distribution of USD3 million worth of the digital yuan lottery.

Detail: The city of Shanghai will hand out CNY19.25 million (around USD3 million) in 350,000 red packets worth of digital currency.

The red packets will be distributed among local consumers through a lottery system, state-run media Xinhua news agency reported, quoting the announcement of Shanghai Municipality.

A lottery winner will receive a red envelopes that contains 55 digital yuan. Winners of the red packets can use the digital yuan from June 11 to June 20 in Shanghai, they can use digital yuan at shops, malls, supermarkets, restaurants and hotels in Shanghai and other cities implanting digital yuan trials such as neighbouring city Suzhou.

Context:China has an early start in race to launch digital currencies, the country has taken the headline by rolling out trial issuance of a digital yuan in cities since the pandemic hit last year.

The trail for digital yuan has already started in some of the country’s most developed regions including Beijing, Shanghai, Chengdu, Suzhou and Greater Bay Area encompassing Shenzhen, Hong Kong and Macau.

According to Li Bin, head of the People’s Bank of China (PBOC) macroprudential policy burea, Hainan province, the central cities of Changsha and Xi’an, as well as the port cities of Qingdao in Shandong province and Dalian in Liaoning province have been added to digital yuan trials starting in April