Shenzhen, a Southeastern city in China, will be issuing digital currency worth $1.47 million in a pilot program. This step is taken to promote the application of the Digital Yuan, which is a new form of digital currency. The program will be launch in collaboration with the central bank of China, the People’s Bank of China (PBOC). PBOC will be issuing the whole currency in 50,000 red envelopes worth 200 Yuan each. These envelopes will be selected through a random draw.
Shenzhen Residents Already Started Participating in Draw
According to the reports, Shenzhen residents have already started participating in the draw from Friday, October 09. All the winners of the draw will be receiving the notifications on October 12, 2020, and then they can download the app to receive their envelopes. This program has been launched to deal with the situation that is created due to the COVID-19 pandemic.
Joint Tests of Digital Currency is Completed in China
In August 2020, China’s Ministry of Finance said that the country will conduct pilot tests of its digital currency across several regions. Those regions include Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei region, and a few others. Countries across the world have started researching digital currencies mostly during the COVID-19 pandemic. This is because people started widely moving towards digital currency during this time. However, China was planning to launch its digital currency way too back as it started researching on it in 2014 only. Yi Gang, Governor of PBOC has said that the top-level design, different functions, and tests related to China’s Digital Yuan have already been conducted. The country is now gearing up for the launch of its digital currency and with this launch, it will become the first major country to launch its digital currency as others are still conducting research.