China gives its citizens millions of yuan
China gives its citizens millions of yuan

As the fastest-growing city in China, Shenzhen has decided to make a new sovereign digital currency worth 10 million yuan - the digital renminbi - available to residents as the last step in a series of experiments. Aiming to test and enhance technology.

Shenzhen officials hope the aid will boost domestic consumption.

The city plans to distribute a total of 50,000 red digital packages worth 200 yuan each.

Any Chinese resident in Shenzhen can register for public service with the blockchain-based iShenzhen app registered by Shenzhen City Government.

According to a statement issued by the Shenzhen city government, the winner will receive a red envelope through an official application (digital RMB) to open an e-wallet.

Between October 12-18, Li Shifeng will be able to shop at 3,389 special stores in Shenzhen.

The statement clarified that it cannot be transferred to any other person or to normal bank accounts.

The digital renminbi is officially known as digital currency electronic payment (DCEP) and is part of China's plan to move towards a cashless society.

Unlike bitcoin and other cryptocurrencies, China's central bank - the People's Bank of China (PBOC) - issues and supports the digital renminbi, which is designed as a digital version of the local currency.

This has increased consumption in Shenzhen somewhat and is also testing digital currency as the public already uses the RMB digital currency and can use it in everyday life.

Another benefit of cryptocurrency is that regulators have a complete record of where the money is being spent, which helps them design better targeted stimulus packages and coordinate industrial production.

As part of a national pilot program, the digital RMB was used last year in transactions worth 1.1 billion yuan, of which 13 million were in change.

According to the People's Bank of China, local companies such as Tencent and Alibaba, as well as American brands such as Starbucks and McDonald's, have been involved in some pilot projects.

Shenzhen city government has rewarded about 5,000 medical workers to treat Coronavirus through digital currency electronic payment (DCEP).

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