In Shenzhen, one of the most important cities in China and where the pilot tests of the digital yuan are taking place, 10 million digital yuan were given to citizens to make purchases of basic products in local stores.
China, Asia's technological and commercial giant, continues to move steadily towards the consolidation of its central bank-issued digital currency (CBDC), the digital yuan, crypto yuan or DCEP. It is estimated that this CBDC will be the first digital currency issued in the world, since the Asian giant constantly demonstrates the great advances it is developing around the issuance of this currency.
A few days ago, the deputy governor of the People's Bank of China (PboC), Fan Yi Fei, noted that by the month of August, 1100 billion digital yuan had already been issued, equivalent to about 160 million dollars. Now in the city of Shenzhen, where much of the pilot testing of the digital currency is taking place, emitn 10 million yuan in digital currency (CBDC), equivalent to about 1,5 million dollars. The delivery was made to citizens through a lottery and the digital currencies can be used to pay for purchases of basic products in 3389 stores and businesses in the town.
It is estimated that this new program will give a surprising boost to the nation's new digital money, which can be used and tested by ordinary citizens within the province.
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Shenzhen, a modern province
In Shenzhen, specifically in the Luohu district, known as the Commercial City of China, a lottery was held this Sunday in which the 50 thousand winners were announced, who will receive a “digital red envelope” with 200 yuan, for a total of 10 million digital yuan to be distributed. This is the first public test carried out of this digital currency, since the tests previously developed have been carried out by banking entities, payment service providers and technology companies.
Shenzhen is a modern metropolis that connects Hong Kong with the mainland, which is why it was chosen as the ideal city to develop the public tests because it is a huge trade center with a large number of commercial sites along with a wide variety of products. and much more.
Policy and restrictions
The digital yuan or DCEP can be used starting this Monday in a total of 3389 stores and businesses present in the province for the purchase of basic products. Users can open their “packages” through the official application's electronic wallet Digital Renminbi; However, its transfer to a normal bank account is prohibited by the central bank.
The selection of the beneficiaries was carried out randomly, taking into account the resident citizens of the city of Shenzhen who registered through the public services digital platform based on blockchain, iShenzhen.
Finally, the head of China Citic Bank International, Liao Qun, highlighted that this initiative stimulates the use and consumption of the new digital currency within the Luohu district, an initiative that serves as an example for the rest of the country to observe the easy access and use of this digital currency. Qun assures that this significantly shows the potential that the DCEP has in the daily lives of citizens.
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