The Chinese city of Shanghai will airdrop 19.25 million digital yuan, the equivalent of $3 million, through a lottery system, according to the Shanghai Municipal Information Office.
China’s CBDC (Central Bank Digital Currency) is currently in testing at various levels across the country, after development of the digital yuan was completed in 2019. China, which previously held a similar 6.2 billion “digital yuan” airdrop in Beijing, will now do so in Shanghai.
A total of 350,000 digital red envelopes, each containing 55 digital yuan, will be available to registered citizens. Interested citizens will be able to register for the airdrop on the official WeChat accounts of the Industrial and Commercial Bank of China between June 5 and 6.
China, which began testing the digital yuan in late 2019, began offering it to government employees as a form of travel aid. Later on, he started to work on increasing the usage areas and adoption by switching to airdrops through the lottery system.
China is currently at the forefront of the CBDC game as the rest of the world is either in the planning or development phase. China started CBDC development in 2014. Currently, the digital yuan is in its second year of testing in many cities in China.
China’s leadership in developing and exporting CBDC has caused a sense of urgency in many European countries and the United States. The US already sees the potential impact of the digital yuan on the international trade market as a threat to its financial dominance. Many other countries have also stepped up their CBDC plans, looking at China’s progress.