China's Central Bank, Major City to Hand Out $1.5M in Digital Yuan

A local report suggests the pilot is an indication the digital yuan is close to being launched.

Oct 9, 2020 at 10:03 a.m. UTC

Updated Sep 14, 2021 at 10:06 a.m. UTC

Laisee Wikim commons — Chinese red envelopes

The People's Bank of China and a district of Shenzhen are to hand out 10 million digital yuan (worth around $1.5 million) as "red envelope" gifts to citizens.

The initiative comes as another pilot of the in-development digital currency, which has been in trials with commercial entities and state-owned banks.
Red envelopes are a traditional way of gifting cash in China on holidays or for special occasions such as weddings.
According to a report from Sina.com.cn, the pilot will see 50,000 successful applicants each receive 200 of the digital yuan.
They can be spent at 3,389 stores that are set up to transact in the digital currency.
Anyone living in Shenzhen can apply for the gift from Oct. 9.
The pilot is being help by the central bank in partnership with Luohu District, Shenzhen, which is funding the effort.
The report suggests the pilot is an indication the digital yuan is close to being launched.

Also read: China Central Bank Official Reveals Results of First Digital Yuan Pilots

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