Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
In an effort to promote the use of digital yuan, several Chinese cities have started offering end-of-year giveaways of the state-backed cryptocurrency.
Residents of Suzhou, Xiongan, Chengdu, and Shenzhen will be given a set amount of the digital yuan as part of a lottery. The participating cities are offering different amounts of the digital currency, from 200 to 5,000 yuan ($31 to $770).
The initiative is part of China’s ambitious plan to become the world’s first major economy to introduce a central bank digital currency (CBDC). The digital yuan, also known as the eCNY, is being tested in various cities around China as part of a pilot project.
The giveaways are expected to help further public acceptance and use of the digital yuan. Galvanizing public take-up is key for the success of the project, as the digital yuan can only reach its potential as a viable currency if enough people are willing to use it for commerce.
Unlike other digital currencies, the digital yuan is not created by individuals or companies, instead it is created by the People’s Bank of China (PBOC). The PBOC will be the only entity able to issue and redeem the digital yuan.
The digital yuan is still in its early stages, so it is too soon to tell whether it will gain widespread use. However, with the Chinese government’s backing, it has the potential to become a major force in the world of digital currencies.