Shenzhen, a major Chinese city, is set to kick off a program for the digital yuan, which will give out a large chunk of funds to the general public. Shenzhen is teaming up with the People’s Bank of China (PBoC) to give out 10 million digital yuan, about $1.5 million.
According to a report by a local news outfit, Sina Finance, Shenzhen’s Luohu District will fund the giveaway. Persons interested in participating in the fund distribution may apply online for a limited amount of the funds. The report says the Luohu District will distribute 200 renminbi to 50,000 people via a lottery.
Lottery participants who receive the funds will be allowed to spend the money anytime between the 12th and 18th of October, at any one of over 3,000 vendors in the district. However, recipients will not be allowed to transfer the funds to other persons, or even access the raw cash through their bank accounts.
The giveaway is part of a wider plan from the Chinese government, to promote the digital yuan, China’s central bank digital currency (CBDC). China is currently testing the CBDC in several cities, including Shenzhen, Guangzhou, and also in Macau and Hong Kong.
The report also notes that after October 18, all unspent funds will be returned to the district. So far, China has processed over 1 billion yuan in the ongoing tests.
Image Credits: Pixabay
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