China has airdropped $3 million worth of its Digital Yuan, and the central bank digital currency (CBDC) is already gaining support from over 10,000 stores, including JD.com
The People’s Bank of China (PBC) has revealed that it would be giving out 20 million Digital Yuan ($3 million) to 100,000 people. This would be the largest test of the country’s digital currency, and over 10,000 stores would accept it.
The Chinese city of Suzhou will be the testing ground, and the city officials will hand out 20 million Yuan to 100,000 of its citizens. The Digital Yuan project is also officially called the Digital Currency Electronic Payment (DCEP) and is an initiative of the PBC.
Each participant will be given 200 Yuan ($30.61) on 11 December, the eve of the Double Twelve shopping festival. The participants will be given until 27 December to spend the 200 Yuan in their possession.
According to the South China Morning Post, any Chinese citizen currently living in Suzhou can register for the lottery via Suzhoudao, the city’s official public services app. The winners will be given the money via the official Digital Renminbi App.
Furthermore, some of these participants will have the privilege to be the first to use the dual offline wallets developed by the PBC. The wallets will allow them to use the Digital Yuan to pay for goods in stores without an internet connection, thus, ensuring that the Digital Yuan can effectively replace notes and coins.
Hong Kong wants to test the Digital Yuan
The Digital Yuan is already gaining traction in China and beyond. On Friday, the Hong Kong Monetary Authority (HKMA), the city’s central banking institution, revealed that it is working with the PBC to test the Digital Yuan for cross-border payments.
In a statement, the HKMA pointed out that it is only right to test the Digital Yuan in the region. The Renminbi is in use in Hong Kong, and adding the Digital Yuan will give people more payment options for transferring funds between Hong Kong and the mainland.
China has been focused on the domestic use of the Digital Yuan at the moment. Following the initial airdrop, Chinese e-commerce firm JD.Com stated that it would be the first online platform to accept the central bank digital currency.
JD.com told its customers that it would be accepting the Digital Yuan at its online shopping centre. This will create an avenue for people to spend the Digital Yuan during the festive period.