China to Give Away $1.5 Million in Latest CBDC Trial

The People’s Republic of China has been keen on experimenting with its CBDC (Central Bank Digital Currency) over the last few months. In the latest trial, China would be giving out $1.5 million to its citizens in CBDCs.

Lucky People Get Free $30 for the Holiday

The trial would be taking place in Beijing, China’s capital city, the municipal government announced over the weekend. 10 million yuan will be given out to citizens of China, Macao, Taiwan, or Hong Kong. Those with a Chinese Identification number or a residence permit in any of these territories are also qualified. The trial is dubbed the “Digital Wangfujing Ice and Snow Shopping Festival”

The distribution started yesterday, with vouchers valid from February 10 to 17. The currency would be packed into 50,000 packets containing 200 yuan each, or the equivalent of $30 in typical red envelopes. The Beijing government says it would choose 50,000 lucky people through a lottery. This trial is sponsored by the People’s Government of Dongcheng District, Beijing.

The digital yuan can be spent at select stores across Beijing, or on the Chinese e-commerce site, JD.com. This would be great for those planning to shop during the Lunar New Year, as participants would get free digital yuan to shop. According to the government’s press release last week, the trials are also part of the preparation for the Winter Olympics next year.

Beijing is Preparing for the Winter Olympics

The government says it is doing this “to strengthen the construction of the Winter Olympics payment service environment.” The program is also to promote “online and offline consumption in ice and snow sports. It would include Winter Olympics food, housing, travel, shopping, shopping, and entertainment too. The Beijing government believed this would turn the city into an international consumption city, and ” encourage domestic demand.”

Successful trials have been carried out in Suzhou and Shenzhen in a similar way. In both cities, a lottery was conducted and winners were handed digital yuan in red envelopes. The Beijing trial is the third digital currency in China, and if successful, would put China ahead in CBDC development.