China gives away digital Yuan (e-CNY) worth million to boost adoption

• Chinese cities have launched digital yuan (e-CNY) activities worth over $26.6 million (180 million yuan) to promote its adoption.
• During the Spring Festival, nearly 200 digital yuan activities were launched across China, totaling more than $26.6 million (180 million yuan).

According to a recent Global Times report, Chinese cities have launched digital yuan (e-CNY) activities worth over $26.6 million (180 million yuan) to promote its adoption during the Spring Festival holidays, including subsidies, consumption coupons, and other programs.

In recent months, China has been rapidly developing the digital yuan. Many local governments distributed coupons in the form of digital yuan to boost its adoption during the first Spring Festival holidays after China optimized its COVID-19 prevention measures.

During the Spring Festival, nearly 200 digital yuan activities were launched across China, totaling more than $26.6 million (180 million yuan).

Jinan in East China’s Shandong Province and Lianyungang in East China’s Jiangsu Province issued digital yuan coupons during the season.

A few local governments used digital yuan to subsidize businesses to help them recover. Shenzhen in South China’s Guangdong Province gave out $14.7 million (100 million yuan) in digital yuan to the catering industry.

Previously, Hangzhou issued each resident a $12 (80 yuan) e-CNY voucher last month, with the total giveaway costing the city around $590,000 (4 million yuan).

Commercial institutions also took part in digital yuan consumption promotions, with their operations being more diverse, encompassing mobile communications, supermarkets, transportation, tourism, and other industries.

Chinese consumers are becoming increasingly interested in digital currency. Data from the China-based e-commerce platform Meituan revealed that people adopted e-CNY distributed by the government of Hangzhou in East China’s Zhejiang Province within 9 seconds.

China rigorously implementing its CBDC plan

Other targets and features to increase CBDC usage have also been implemented by the Chinese government in recent months.

Last week, senior ruling party officials in Suzhou city set a tentative key performance indicator of $300 billion (2 trillion yuan) in e-CNY transactions in the city by the end of 2023.

The target is ambitious considering cumulative e-CNY transactions had crossed $14 billion (100 billion yuan) in October 2022, two years after the CBDC’s launch.

In December 2022, Xie Ping, a former Chinese central banker, expressed disappointment that China’s digital yuan is not being used.

Ping mentioned that two years after the launch, cumulative digital yuan transactions had only reached $14 billion (100 billion yuan) in October 2022. “The results are not ideal,” he said, adding that “usage has been low, highly inactive.”