As the Beijing Local Financial Supervision and Administration Bureau revealed that it will distribute 40 million U.S. dollars worth of digital renminbi (6.3 million U.S. dollars) to Chinese citizens, the People’s Bank of China Digital Currency (CBDC) continues to rise.
Beijing and the People’s Bank of China launch digital renminbi lottery
The People’s Bank of China (PBoC) and Beijing Local Financial Supervision and Administration Bureau announced a new digital renminbi test for local residents. Bitcoin.com News has reported the last CBDC red packet test in China in the past, because the central bank has dispersed millions of digital yuan for testing.
Now, Beijing plans to distribute a CBDC worth US$6.3 million to citizens by issuing 200,000 digital red envelopes, each of which is 200 yuan. As usual, residents can use digital renminbi at merchants that accept CBDC (such as the popular market JD.com). Residents who want to receive some red envelopes must enter the lottery system through the mobile application of Bank of China or Industrial and Commercial Bank of China.
With countless companies such as Tencent, Alibaba, Ant Financial, Mastercard, and JD.com, who have been testing China’s CBDC, news about the launch of the digital renminbi is getting closer. The deadline for citizens to register for China’s latest red envelope test is June 7.
However, despite the help of many large companies and the recent red envelope distribution, a recent report pointed out that Shenzhen residents are concerned about privacy. In addition, due to monitoring problems, Shenzhen residents have little interest in CBDC.
According to reports, China’s digital renminbi smart cards will have biometric and fingerprint scanning functions. The People’s Bank of China also plans to decentralize the digital renminbi at the 2022 Winter Olympics. In addition to Beijing and Shenzhen, the digital renminbi developed by the People’s Bank of China has also been tested in Changsha, Suzhou and Chengdu.
What do you think of Beijing’s 6.3 million U.S. dollar digital renminbi? Please tell us your thoughts on this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons