Chinese City Plans Third Digital Yuan Pilot, Giving Away $3M in Currency

The Chinese city of Shenzhen will stage another public trial of the central bank’s in-the-works digital currency, giving away 20 million digital yuan (a little over US$3 million) via a lottery.

  • This is the third time Shenzhen will hold one of the “red envelope” giveaways, with entrants being able to apply to win prizes of 200 digital yuan each through a random draw.
  • The event opened for registration Wednesday for businesses and employees of enterprises staying in Shenzhen’s Longhua district during the Spring Festival, XinhuaNet reported. Previous lotteries were open to the city’s residents.
  • The pilot is aimed to test China’s in-development central bank digital currency in the hands of the public.
  • Winners need to download an app to transact the digital coins, which can be spent at 3,500 stores equipped with the appropriate point-of-sale technology.
  • The city of Suzhou held a similar trial in December, also handing out 20 million digital yuan.

Read more: Chinese Bank Trials Digital Yuan Services at ATMs: Report