China Promotes CBDC Through Millions of Digital Yuan Giveaway

• Over $26.5 million (or 180 million yuan) in CBDC was apparently distributed.
• Citizens in Hangzhou spent the e-CNY distributed in only 9 seconds.

Over the Lunar New Year period, the Chinese Central Bank distributed CBDC worth millions of dollars around the nation. Around 200 events for the e-CNY were introduced around the nation during the holiday season. This is according to a report in the Global Times which is an English-language arm of the state-run People’s Daily newspaper on February 6.

It’s the first time the government has allowed such actions to “promote consumption” since easing COVID-19 regulations. Over $26.5 million (or 180 million yuan) in CBDC was apparently distributed across many cities. Via various initiatives including subsidies and consumption incentives.

Giveaway Well Received by Locals

The publication cited the Shenzhen local government’s distribution of more than $14.7 million (100 million yuan) in e-CNY. To aid the city’s catering sector as an example. According to a China Daily article published on February 1, the city of Hangzhou gave out e-CNY vouchers worth $12 (80 yuan) to each of its residents on January 16. Furthermore, the total cost of the giveaway was around $590,000.

Moreover, they found that several of these programmes were quite well received by locals. According to the Global Times, citizens in Hangzhou spent the e-CNY distributed by the city government in only nine seconds, based on information from the e-commerce portal Meituan.

Over the last several months, the government has implemented new goals and features intended to increase CBDC adoption. Senior governing party leaders in Suzhou city established a potential key performance indicator by the end of 2023. To have $300 billion (2 trillion yuan) worth of e-CNY commerce in the city.