China’s Central Bank, Major City to Hand Out $1.5M in Digital Yuan

The People’s Bank of China and a district of Shenzhen are to hand out 10 million digital yuan (worth around $1.5 million) as “red envelope” gifts to citizens.

• The initiative comes as another pilot of the in-development digital currency, which has been in trials with commercial entities and state-owned banks.
• Red envelopes are a traditional way of gifting cash in China on holidays or for special occasions such as weddings.
• According to a report from Sina.com.cn, the pilot will see 50,000 successful applicants each receive 200 of the digital yuan.
• They can be spent at 3,389 stores that are set up to transact in the digital currency.
• Anyone living in Shenzhen can apply for the gift from Oct. 9.
• The pilot is being help by the central bank in partnership with Luohu District, Shenzhen, which is funding the effort.
• The report suggests the pilot is an indication the digital yuan is close to being launched.

Also read: China Central Bank Official Reveals Results of First Digital Yuan Pilots