China keeps conducting programs to pilot and encourage widespread adoption of China's central bank digital currency (DC/EP or the digital yuan).
The city of Shenzhen enabled its residents to boast the chance to register to participate in a municipal lottery, while the registrations were closed on Jan. 4, at 10 a.m. local time. The Shenzhen government announced that those people who are interested in it were able to sign up for the lottery through the usage of the iShenzhen event registration platform. Strictly speaking, the lottery is not a competition but is being settled based on the first-come, first-serve principle.
The city intends to distribute 100,000 "red envelopes" to lottery winners totally, each containing 200 digital yuan (almost $31). It's estimated that the envelopes' combined value is about $3 million and the winners will be able to spend their gifted currency across 10,000 supported merchants. In addition, the envelopes will just be available for merely 10 days.
There is a need for lottery winners to download and install an app and open a personal digital wallet so as to spend their currency, have previously provided their resident ID cards and mobile phone numbers for registration.
According to previous reports, China's highly-anticipated digital currency had already been used in more than 4 million transactions by November 2020, reaching over 2 billion yuan ($299 million) in value in total. Pilots have been conducted without a hiatus since April 2020, with early trails centered on major cities like Shenzhen, Chengdu, Suzhou and Xiongan.
Mid-December saw the South China Morning Post cited Zhou Xiaochuan, the president of the Chinese Finance Association and former People's Bank of China governor, who held that the DCEP does not boast the intention to take place of global fiat currencies like the U.S. dollar or the euro.
Actually, there have two similar activities held in China. On October 9, in collaboration with the country's central bank, Shenzhen planned to issue a total of 10 million digital yuan ($1.5 million). The giveaway pilot project was funded by Shenzhen's Luohu District.
Dec. 5 saw the Suzhou Municipal Government along with the People's Bank of China announced that people could make an appointment about the pilot program related to digital yuan lottery. Combined with the "Double Twelve Suzhou shopping festival", a total of 20 million yuan ($3 million) was up for grabs in a lottery to all eligible Suzhou citizens.
China is gradually getting involved in international economic activities, deepening cooperation and exchanges with other economies, and enhancing China's voice in subdivided industries and fields. All these moves make it feel that there is a growing demand for China to promote the renminbi internationalization.