Chengdu has confirmed the distribution of $6 million in the latest test of the digital yuan by the Central Bank of China. The Southwestern city becomes the latest in a growing list that includes Beijing, Suzhou and Shenzhen.
The latest distribution of $6 million is more than double the last one, conducted earlier in the month. Beijing saw around $1.5 million distributed to 50,000 participants. The Chengdu digital yuan lottery will roughly be distributed to 200,000 participants who will receive around $27 to $37. It is further reported that the handouts are tied to the Lunar New Year and will work with local retailers like JD.com.
The People’s Bank of China has seemingly been doubling its efforts in recent months. Not only has it increased the amount and added new cities like Beijing and Chengdu, but has also enrolled new banks. As Coinspeaker reported, last week the Central Bank made a deal with the first two private banks to pilot test the digital yuan. Tencent’s WeBank and Ant Group’s MyBank joined in a list of six state-owned banks.
China has seen a digital shift in recent years. The economy has been largely dependant on electronic payment with most buyers preferring to use electronic money rather than cash. On this front, the Alipay app and Wechat Pay have been the most popular platforms accounting for around 94% of the industry. With the digital yuan, the government is looking to tap into the industry. And it is not only launching the digital yuan but has also introduced more stringent rules to curb the fintech industry. A move that was considered malicious and aimed to pave way for the digital yuan.