In China, the digital yuan is already available in some pilot cities, selected to prepare the national deployment. Over the weekend, 3 million dollars in digital yuan will be distributed to the inhabitants of the city of Suzhou via a draw. The launch is approaching?
China is organising a massive airdrop of the digital yuan in a pilot city.
Digital yuan on trial
In China, the government of the city of Suzhou is distributing over the weekend 20 million yuan in digital form, the equivalent of 3 million dollars. The city’s 10.7 million inhabitants can sign up for this airdrop and 100,000 lucky people will each receive 200 digital yuan, or 30 dollars.
To ensure that the experiment is successful, the selected residents will be able to spend their digital yuans on the Internet during „Double 12“, a local version of Black Friday. Online, the digital yuan can be used for purchases on JD.com, the 2nd largest e-commerce platform in China.
At the same time, a handful of people will have the opportunity to spend their money in shops around the city to try out the offline payment function of the digital wallet.
This event is being organised in collaboration with a local bank, which will provide its mobile application dedicated to the digital yuan.
Apart from the fact that this is a trial for the digital yuan, a press release from the city of Suzhou on the subject explains :
„This event is also an innovative approach led by the city of Suzhou as part of the standardisation of epidemic prevention and control to stimulate consumption and domestic demand. It is of significant importance in promoting quality development of the local economy. »
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National deployment is getting closer
Such free distribution of the digital yuan is proving to be a relatively effective strategy for getting people used to the digital version of the yuan. Moreover, the integration of the digital yuan within the ecosystem of local giants such as JD, Alibaba or Tencent, gives it unprecedented visibility.
Other industries such as the telephone industry are working on solutions for the digital yuan. This is notably the case of Huawei, the smartphone manufacturer which revealed last October that its Mate 40 series models will include a hardware portfolio for the digital yuan.
Note that this is not the first full-scale test for the digital yuan. Last November, 50,000 inhabitants of the city of Shenzhen shared the equivalent of 1.5 million dollars in digital yuan. Some of the winners of this first airdrop hadn’t found the digital yuan particularly interesting compared to other means of payment already in existence, while designating it as less convenient.
The introduction of the digital yuan on the whole territory is getting closer, notwithstanding those who gave unfavourable criticisms against it …