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China’s Central Bank Digital Currency (CBDC) Finally Here for the Shenzhen Public

China is at the onset of presenting it’s central bank digital currency (CBDC) to the public in a giveaway via an interesting online lottery system started from Oct 9th.

The latest exercise is a part of the Chinese government plan towards the publicity of the digital yuan known as the digital currency electronic payment, or DCEP. The current updates, showcasing that China is about to officially launch CBDC openly in public shortly. 

At present, Chinese digital yuan or digital renminbi (DCEP) is going to target for the initial launch to the city of Shenzhen in a much-awaited pilot which is reportedly called as “digital red envelopes” and going to distribute at least 10 million digital yuan ($1.5 million) to approx. 50,000 natives through a wallet. The chances are to expand the pilot later after the outcomes of “digital red envelopes.”

As per the information, “to promote the construction of the Guangdong-Hong Kong-Macao Greater Bay Area,” the collaboration of Central Bank of China (People’s Republic of China) with Shenzhen Municipal Government resulted in the launch of the RMB red envelopes pilot. The lottery pilot of the digital renminbi “ is funded by Luohu District, Shenzhen. 

In the pilot, the winning applicants get the opportunity to avail 200 yuan in a lottery system which has to spend in a stipulated time frame failing which leads to confiscate the remaining balance if individuals hold after the expiry of the time frame.

For the consumption of the lottery amount, there are about 3389 merchants available for the natives. Interestingly, the winning amount can neither be transferred to any other individual nor is allowed to redeem in one’s bank account.

Meaning, the winning amount has to be consumed completely between 12th to Oct 18th in Shenzhen Luohu District, or else the unused amount will be seized from the winners.

KoinPost, earlier reported about the closed pilot of digital yuan where in total nine cities, including Shenzhen, Suzhou, Xiongan, Guangzhou, Chengdu as well as Hong Kong, and Macau, are part of the digital yuan project which officially started in China from April 2020. 

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