China has made tremendous progress on the digital yuan and is testing its use on a fairly large scale. It is known that the country has recently started the Digital Currency Electronic Payment (DCEP) test in Beijing and Shanghai to introduce the digital currency. Beijing announced that it is exporting 10 million digital yuan ($ 1.55 million) to local residents to include more people.

 

 

Digital yuan distribution is done in red envelopes

This move is expected to enable users to experience the use of the digital asset while at the same time encouraging their consumption during the upcoming Spring Festival. To keep things interesting, China distributes these digital assets in virtual “red envelopes.” A total of 50,000 digital red packages, each containing 200 yuan each, will be distributed to Beijing residents from February 10, according to a statement posted on the official WeChat account of the local financial regulator.

Those selected will be able to use the digital currency in selected online and physical stores until February 17. There will be at least 100 designated physical stores in the Wangfujing commercial environment or through the online e-commerce platform JD.com.

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Focus 2022 Olympics

The Beijing 2022 Winter Olympics are just over 365 days away, so the event has been dubbed the “digital Wangfujing, ice and snow shopping festival”. The aim is to promote the use of the digital yuan in winter sports and the 2022 Olympic Games.

Another milestone has been reached in the long series of advances in the advance of the digital yuan in China. Prior to this, there were trials with only general paying users, but as the focus was on the 2022 Olympics, the country is preparing to entertain international customers as well.

Joint venture with SWIFT

Similarly, China’s central bank’s digital currency research agency and exchange center began a joint venture with SWIFT, a global system for financial messaging and cross-border payments. In a statement to Reuters, SWIFT noted that four other payment market participants and infrastructure providers have set up initiatives to comply with China’s requirements.

“The initiative will be able to obtain the necessary licenses for local network management activities. The scope of its services will be limited and will focus entirely on maintaining compliance with applicable regulations in China. ”

China is working to facilitate the internationalization of the yuan and take it out of the shadow of the US dollar. The advancement of the digital yuan has been a sign of this. It is thought that they will soon be able to achieve this when all systems work internally and internationally.

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