A city in China plans to distribute digital red packages containing digital money (Yuan) to its citizens. This is as part of the country’s efforts to launch its first sovereign digital currency.
In a statement posted on Friday night, the Suzhou city government said it would give 20 million yuan to its residents through a lottery.
Quoting from the Bangkok Post, Monday (7/12/2020), as many as 100,000 digital red packages, each containing 200 yuan, will be distributed to residents on Friday (11/12) night. It’ll right in the middle of the celebration of the Double Twelve (12.12) shopping festival. ). The distribution of the digital red package will be valid until 27 December.
Limited Package Draw for those who live in the East City only
However, not all Chinese citizens have the opportunity to win the lottery package. The draw for this package is limited to every Chinese citizen living in the eastern city only. You do this by registering for the lottery through the Suzhoudao app, the city’s official public service app.
Winners will receive a red package/ It’s a traditional symbol of Chinese good luck, via the official Renminbi Digital App. It’s not yet available for download but will be accessible to winners.
Digital yuan, officially known as Electronic Digital Currency Payment (DCEP), is part of China’s plan to move towards a cashless society.
Unlike bitcoin and other cryptocurrencies. DCEP is issued and supported by the country’s central bank and designed as a digital version of the yuan.
Suzhou’s move comes after Shenzhen launched the country’s first large-scale public trial of the digital yuan beta in October. This time around 20 million yuan distributed in Suzhou, double the amount launched by the previous city of Shenzhen.
About 10,000 shops will take part in the Suzhou trial, including Chinese e-commerce giants like JD.com.
So far, there have been four major state-owned banks that have launched internal tests of the sovereign digital currency, including Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China. In addition, two other state-owned banks, namely the Communication Bank and the China Post Savings Bank, will join the trial in Suzhou.