China continues to lead the race to launch a digital sovereign currency with its latest public test in Beijing, the largest so far, following similar trials in Suzhou and Shenzhen.
China's central bank is giving away 40 million digital yuan in a lottery to 200,000 winners, who will receive «red envelopes» with 200 digital yuan ($31.34), according to a notice on the city's government website, «Reuters» reported on Wednesday.
To join the lottery, participants must apply by June 6, with the winners to be announced several days later. They will have to download an app to use their funds, known as eCNY, at selected merchants in the capital by June 20, the report said.
Front Runner
The People’s Bank of China (PBoC) is looking to fully replace both long-term bank deposits and cash in circulation with a digital yuan. The country is a front runner among major central banks to introduce a central bank digital currency (CBDC), which it sees as a means to internationalize the yuan and reduce dependance on the dollar globally.
The country has conducted multiple trials, with an eye on a broader roll-out for the Winter Olympics in Beijing next year.
However, as finews.asia previously reported, many challenges still remain, including the dominance of Alipay and WeChat in mobile payments.
