digital yuan News:China has been working on a central bank digital currency (CBDC), which it calls the “digital yuan,” for over seven years. It has been announced that the project has reached a critical testing stage and is ready to be used by citizens.
6.2 million dollar lottery will be held
According to the information conveyed by CNBC, approximately $ 6.2 million in digital currency will be distributed via airdrop to people living in Beijing, the capital of China. The Asian giant will select the recipients of the CBDC via a lottery.
To participate, citizens must register and download two of the designated banking apps. The deadline for registration has been set for 7 June.
Persons selected in the lottery will receive one of 200,000 “red packs,” according to the report. These envelopes will contain approximately 200 yuan, equivalent to $31 for use in select stores. The People’s Bank of China (PBOC) is working with the same mechanism in other parts of the country to test CBDC.
Digital yuan could be the apple of the Olympics
It was reported that cities such as Chengdu and Shenzhen participated in the lottery. According to the statements of senior government officials, the digital yuan could be an important part of the 2020 Beijing Winter Olympics.
The Chinese CBDC, also known as the Digital Renminbi or e-CNY, is being developed faster than any other project in the world. A month ago, Ant Group, a subsidiary of Alibaba, one of the largest payment services providers in China, announced that it has started a collaboration with the PBOC to deliver its databases.
This collaboration is seen as part of a “joint development” between the institution and other private companies to keep the CBDC moving forward. The PBOC appears to need help in two critical areas: infrastructure and distribution channels.
Yao Qian, member of the China Securities Regulatory Commission, proposes using the Ethereum network or Diem network to launch the digital yuan. The government official first presented the idea at the International Finance Forum (IFF) 2021 in Beijing. However, he stated that he was just brainstorming.