China has started one of the biggest real-world trials for its digital currency as it pushes closer toward creating a cashless future.
Shenzhen - a China's major city is giving away 10 million yuan in the country’s central bank digital currency in one of the country’s biggest public tests. Last week, the government in Shenzhen carried out a lottery to give away a total of $1.49 million worth of the digital currency. Nearly 2 million people applied and 50,000 people actually won. Recipients can now download a digital renminbi app to receive the digital yuan and spend it this week at 3,389 stores in a particular district of Shenzhen. Local supermarkets and pharmacies are among the participating merchants, including Sinopec gas stations, Walmart stores, CR Vanguard malls and Shangri-La hotels. The south China technology hub is home to some of the country’s biggest tech giants including Huawei and Tencent.
Through this action, the city aims for the giveaway to boost usage of the new government-backed digital currency. Also, this is part of the digital yuan pilot program that is being conducted in several major cities in China and the first public test of the digital currency.
The digital yuan is not a cryptocurrency like bitcoin. It is issued and controlled by the country’s central bank - the People’s Bank of China (PBoC). It's aim is not to replace digital wallets like Alipay or WeChat Pay. It will more likely work together with them as well as other banks. In comparison, Bitcoin is decentralized, which means it’s not owned and controlled by one entity, and it is not distributed by a central bank neither.
PBoC Deputy Governor Fan Yifei recently revealed that the digital yuan, known as the Digital Currency Electronic Payment (DCEP), has already been used in 3.13 million transactions worth about 1.1 billion yuan. In addition, the Shenzhen government recently rewarded about 5,000 medical and healthcare workers dealing with the Covid-19 pandemic with digital yuan.
__________________________________________________
Sources:
https://news.bitcoin.com/digital-yuan-giveaway-10-million-central-bank-digital-currency/
https:// issuu.com/platinumcryptoacademy/docs/cw_13.10.2020_1/s/11137843
https://www.cnbc.com/2020/10/12/china-digital-currency-trial-over-1-million-handed-out-in-lottery.html
Mikhaïl NEFEDOV
Président de l'association
En savoir +
Central Banking News
-
Bank of Russia holds rates
Source: Monetary Policy - centralbanking.com Published on 30-04-2024
-
Press releases, conferences and website are top external channels
Source: Monetary Policy - centralbanking.com Published on 30-04-2024
-
One in five communications teams use AI for their work
Source: Monetary Policy - centralbanking.com Published on 30-04-2024
-
Pakistan holds interest rate ahead of IMF loan review
Source: Monetary Policy - centralbanking.com Published on 29-04-2024
Climate Capital News
-
UK ‘not exciting’ for green investors, says former climate adviser
Source: Climate Capital Published on 01-05-2024
-
US reluctant to back stringent production curbs in plastics treaty
Source: Climate Capital Published on 30-04-2024
-
G7 pact to stop using coal by 2035 sets up next battle over gas supplies
Source: Climate Capital Published on 30-04-2024
-
EU investigates ‘greenwashing’ at 20 airlines
Source: Climate Capital Published on 30-04-2024
The Economist News
-
And then there were two
Source: Bagehot’s notebook Published on 20-06-2019
-
The centre cannot hold - the failure of Change UK and the atrophying of political thought
Source: Bagehot’s notebook Published on 19-06-2019
-
On Britain beyond Brexit and the future of Conservatism
Source: Bagehot’s notebook Published on 18-06-2019
-
On Change UK’s inadequacies, political agreements and missing Scots
Source: Bagehot’s notebook Published on 20-05-2019
Bis News
-
Head of People Services (Deputy Head of HR)
Source: All categories Published on 30-04-2024
-
Reserve requirements as a financial stability instrument
Source: All categories Published on 30-04-2024
-
Basel Committee publishes consultation on guidelines for counterparty credit risk management
Source: All categories Published on 30-04-2024
-
Guidelines for counterparty credit risk management
Source: All categories Published on 30-04-2024
Trackbacks/Pingbacks