China continues to lead the race to launch a digital sovereign currency with its latest public test which involves giving away nearly $1.5 million of electronic yuan.
50,000 randomly selected individuals will receive «red envelopes» with 200 yuan ($29.9) each, totaling 10 million yuan as part of the next stage of testing the digital currency.
The latest pilot will only involve users, vendors and authorities in Shenzhen and those interested in participating and receiving the «red envelopes» can apply through China’s ‘big four banks’ – Bank of China, ICBC, China Construction Bank and Agricultural Bank of China, according to local authorities.
The digital currency – known as the «Digital Currency Electronics Payment (DC/EP) or the «e-yuan» – will be usable in over 3,300 retail outlets in Shenzhen that span across gas stations, supermarkets, malls and hotels.
First-Mover Advantage
China is making rapid efforts to near a launch of the e-yuan with an eye on real use in the upcoming Winter Olympics in 2022.
According to a commentary published by the People’s Bank of China (PBoC) last month, the nations seeks to become the first to launch a digital sovereign currency, not only to further ambitions to internationalize the yuan but also to reduce dependence on the global dollar payment system, in light of ongoing tensions between Beijing and Washington.
E-Yuan Flows
Recently, PBoC deputy governor Fan Yifei publicly shared figures about e-yuan flows and transactions and reiterated its importance for China’s future development.
According to Fan, the e-yuan has thus far registered 3.13 million transactions toiling over 1.1 billion yuan ($162 million) in the pilot programs which involved around 113,300 personal digital wallets and 8,800 corporate digital wallets.
«PBoC regards digital renminbi as an important financial infrastructure for the future,» Fan said in a recorded speech for the Sibos banking and financial conference last week.
