Continuing on with its central bank digital currency (CBDC) trials, China will hand over 40 million renminbi ($6.2 million) of its digital currency (Yuan) to Beijing residents in a lottery. Beijing residents can apply to win one 200,000 red packets through two banking apps, each containing 200 Yuan. The deadline to register is midnight on June 7.
The development of its CBDC began in 2014; trials with digital yuan have been ongoing since last year. Other cities like the Chinese technology hub of Shenzhen held their own lotteries. Chinese city of Chengdu handover 40.2 million Yuan worth of digital Yuan currency earlier this year.
Li Bo, deputy governor of the people bank of China(PBOC), said in April that the central bank would expand the scope of its pilot project. It also even allows foreign visitors to the 2022 Beijing Winter Olympics to utilize it.
Li repeat digital yuan was for domestic use and did not attempt to challenge the dominance of the U.S dollar.
“For the internationalization of renminbi, we have said much time that its natural process of our goal is not to replace U.S dollar or any other international currency.” Li said, “I think our goal is to allow the market to choose and to facilitate international trade and investment.”
China continues testing of digital yuan comes as authorities renew crackdown on cryptocurrency sector in the country. Cryptocurrency exchanges banned In 2017. Regulators are now turning attention to cracking down on bitcoin mining.