The Chinese city of Shanghai will distribute 19.25 million digital yuan, equivalent to $3 million, through the lottery system, according to the Shanghai Municipal Information Bureau.
The CBDC digital currency is currently being tested across the country at various levels after its development was completed in 2019.
Details of the digital yuan distribution in Shanghai:
A total of 350,000 digital red envelopes, each containing 55 digital yuan (about $8.6), will be accessible to registered citizens.
Interested citizens can register for the free distribution on the official “WeChat” accounts of the Industrial and Commercial Bank of China between June 5 and 6.
China began testing the digital yuan in late 2019 and began offering it as a form of travel support for government employees and later moved to free lottery distributions.
China is currently at the fore in the CBDC game as the rest of the world is either in the planning or development stage.
The People’s Bank of China, which is itself the central bank, began developing the digital currency issued by the country’s central bank in 2014.
At present, the digital yuan is in the second year of testing across multiple cities and provinces in China.
China’s primary leadership in the development and issuance of digital central bank currencies has caused a sense of urgency among many European and American countries.
The United States is already treating the potential impact of the digital yuan on the international trade market as a threat to its financial sovereignty.
Several other countries have accelerated their plans to develop a central bank currency to counteract China’s advance.
Recently, the finance ministers and central bank officials of the G7 nations met for discussions on various financial regulations including the imposition of a blanket tax of 15% for the wealthy, in addition to discussions on central bank currencies and the development of stablecoins.
The Group of Seven has published a set of design preferences for central bank digital currencies, which we pointed out in a previous article entitled: