Chinese city Suzhou is set to airdrop 30 million yuan ($5 million) to citizens in the latest round of digital yuan tests. This was revealed by the regional government yesterday in a press release informing citizens of the distribution.
150,000 Recipients to Receive Digital Yuan
The giveaway is expected to occur on Friday, with a total of 150,000 red envelopes containing 200 yuan ($31) set to be distributed to citizens across the city. The regional government revealed that the distribution was part of the government’s incentive towards the New Year Festival celebration.
Suzhou Citizens will have to install the necessary apps to make an appointment for registration for the lottery. The reservation period will take place on February 5 and close at midnight on February 6. Eligible participants will be chosen via a lottery draw
Suzhou government further stated that the lottery result would be revealed on February 10 and the digital yuan sent through approved applications. Once received, citizens will spend the digital yuan at designated online e-commerce and offline merchants from February 10 to February 26.
Digital Yuan at Advanced Testing Phase
China has continued to accelerate its central bank digital currency, the “Digital Yuan .” Several tests have been conducted in several cities in the past few weeks as the government looks to accelerate the digital currency’s deployment in the first quarter of the year.
According to government officials, the last major digital yuan airdrop in Shenzhen was a success, with residents using the currency to perform over 140,000 transactions during the test period. This followed the announcement that the Agricultural Bank of China had kicked off testing ATMs that would allow customers to convert their cash to digital yuan.
China’s accelerated pace in deploying the digital yuan has caused notable concern from western economic powers. Economic rival Japan recently announced plans to research about developing a national digital currency. South Korea is also closing in on the final phase of its CBDC test pilot program.
European nations are not left behind with France already testing a prototype of the digital Euro in partnership with the blockchain platform Tezos. Estonia has also revealed plans to begin consultations and development of a digital currency that will be used within its financial system. 2021 is likely to be the year when CBDC finally become adopted by many nations.