Shenzhen residents to win ‚red envelopes‘ of the digital yuan lottery

Von | 4. Januar 2021

City lottery winners will have 10 days to spend their digital currency on any of the 10,000 supported merchants.

Shenzhen residents will win ‚red envelopes‘ of the lottery with yuan digitalNOTÍCIAS

Programmes to test and encourage widespread adoption of China’s central bank digital currency, known as Digital Currency Electronic Payment or the digital yuan, continue at a rapid pace.

As a New Year’s offer, the city of Shenzhen offers its residents the Financial Peak review option to register for the municipal lottery, starting Friday of last week, with registrations closed this Monday morning at 10am local time. Those interested were able to register for the lottery through the iShenzhen events registration platform, as announced by the Shenzhen government. The lottery, strictly speaking, is not a competition but is being decided in order of arrival.

In total, the city plans to give 100,000 „red envelopes“ to the lottery winners, each containing 200 digital yuans (about $31). The combined value of the envelopes is estimated at about $3 million, and recipients will be able to spend their gift currency on 10,000 supported merchants. The envelopes will be active for only 10 days, after which the currency will expire.

To spend their coins, lottery winners will need to download and install an application and open a personal digital wallet, having previously provided their resident ID cards and mobile phone numbers for registration.

As reported earlier, China’s long-awaited digital currency had already been used in more than 4 million transactions by November 2020, totaling more than 2 billion yuan (US$299 million) in value. The pilots have been underway since April 2020, with initial testing focused on major cities such as Shenzhen, Chengdu, Suzhou and Xiongan.

The unveiling of the digital yuan has attracted public officials and reporters to analyze its potential geopolitical implications and its potential impact on a global financial system that continues to revolve around the US dollar as a global reserve currency. In mid-December 2020, the South China Morning Post cited Zhou Xiaochuan, president of the Chinese Financial Association and former governor of the People’s Bank of China, who argued that DCEP is not intended to replace global currencies such as the US dollar or the euro .