CBDC lottery in Far East: China mixes E-Yuan

CBDC lottery in Far East: China mixes E-Yuan

Tripartite interlocking image consisting of the Chinese national flag and a 100 yuan note with Mao Zedong’s face on it. Below are stock market prices.

In Suzhou, China, 20 million digital yuan will be raffled among the population until 11 December. The lottery consists of a total of 100,000 packages, each worth 200 digital yuan. All citizens with a permanent residence in the eastern Chinese city are eligible to participate.

In China, the government announced a lottery in the city of Suzhou on 4 December with a total value of 20 million yuan (US$ 3 million). Citizens of the city were able to register Cryptosoft via the city’s own app between 5 and 6 December to have the chance to win one of 100,000 digital packages. Each package contains 200 „DCEP“ („Digital Currency Electronic Payment“), China’s CBDCs. The raffle is currently underway and the winners will be announced on 11 December.

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The timing of the city government is well chosen, as the annual Double 12 shopping festival, also known as „Couples Day“, starts on 12 December. Winners will be able to shop from 11 to 27 December in all DCEP shops that accept digital currency. JD.com also announced that customers will be able to use the digital currency on the e-commerce platform for profit. The city also announced that selected winners would be invited to test the offline payment function in the form of a DCEP wallet. The digital wallet could only be activated by six state banks.

China’s next crypto pilot project

The recently announced lottery is another pilot project in China to promote the adoption of the digital yuan among the population. Already in October, the city of Shenzhen raffled off 10 million DCEP in 50,000 packages to its citizens, half of the volume now being issued in Shozhou. In fact, the digital yuan is already gaining acceptance even before its official launch. In November, the governor of the People’s Bank of China announced that the crypto currency had already been used for four million transactions.

The Middle Kingdom also has high ambitions beyond its borders. In the Hong Kong Special Administrative Region (SAR), tests were launched on 4 December to test China’s CBDC for cross-border transactions. The tests have been known since October. In view of the tense political situation between China and the autonomous city, the one-party state is also using the digital currency to continue its influence on Hong Kong.