As the Government intensifies its testing of the Digital Yuan, China's financial metropolis Shanghai will plan a lottery over the weekend, giving people the chance to win electronic "red packages" worth roughly 20 million yuan ($3 million).
Shanghai announced plans to give 350,000 red packets carrying 55 Yuan worth of digital currency, or e-CNY, only days after Beijing announced identical intentions.
Cash is commonly given as a present in little red envelopes known as ‘red packets’ in China.
China is a front-runner in the worldwide race to create central bank digital currency (CBDC), with testing in places such as Shenzhen and Chengdu.
Analysts believe that the Digital Yuan, issued by the People's Bank of China (PBOC), can help Beijing increase its economic monitoring, increase data management, and perhaps increase the Yuan's worldwide position.
The draw for the e-CNY red packets will take place on Saturday and Sunday, and anybody in Shanghai can apply, according to a statement made on the Shanghai government's official Wechat account.
The cash prizes will be available for use from June 11 to June 20 in Shanghai and other towns undergoing digital yuan experiments, such as neighboring Suzhou, according to the local administration.
Customers currently can use e-CNY at various major retail areas in Shanghai, including stores, malls, supermarkets, restaurants, and hotels.
(1 US dollar = 6.4057 Chinese yuan renminbi)
In April, Li Bo, deputy governor of the People's Bank of China (PBOC), stated that the central bank will broaden the scope of its pilot programs and potentially enable international visitors to the 2022 Beijing Winter Olympics to use them.
In April, PBOC Deputy Governor Lee reiterated that the digital yuan was developed for domestic usage, not to threaten the supremacy of the US currency.
Lee stated that they have frequently said that the renminbi's internationalization is a natural process. He went on to say that their objective is not to replace the US dollar and other international currencies, but rather to enable markets to pick and to boost international commerce and investment.