China’s interest in the development of the Central Bank Digital Currency [CBDC] is witnessed through the progress the country is making in the same. Fearing China’s global take over with regard to financial technology, other countries have stepped up their game and have been probing the prospects of CBDC. However, the latest news from China suggests that the digital yuan would soon be out and about.
Public Giveaway To Endorse The Digital Yuan
Not long ago, China revealed that its CBDC the digital yuan was out for testing in various sectors. The Shenzhen city of China seems to be taking things up a notch by rolling out a pilot program that includes the distribution of the digital yuan. A news portal revealed that the Chinese city had joined forces with the central bank of China in order to organize a public giveaway.
Funded by the Luohu District of Shenzhen, a total of 10 million digital yuan which is worth about $1.5 million will reportedly be distributed among the residents of the city. The giveaway will include a total of 50,000 individuals and the aforementioned amount would be allocated via a lottery. The intention behind carrying out such a task is to allow the citizens to spend the digital yuan, which is part of the testing program.
An online platform was set up for the giveaway where individuals could register and apply to be a part of the program. The giveaway was scheduled for 9 October 2020 and the winners could commence putting their digital yuan to use from 12 October to 18 October. While the spending of the acquired digital yuan is limited to the Luohu area, about 3,389 shops are reportedly willing to accept the digital RMB.
If the winners of the giveaway restrain from spending the received amount post 16 October, the bank would reportedly take it back.
As China makes headway in the development of its CBDC, other countries are still in the probing stage. Japan recently revealed that it was not looking to launch a CBDC any time soon and would engage in intensive research about the same. South Korea, however, has been trying to catch up with China. The country seeking the attention of the world through its pop culture has also begun the distribution stage of the digital won.