Beijing officials will host a lottery among people in June, awarding 40 million yuan ($6.26 million) to the lucky 200,000 participants. Each will be given a “red envelope” with 200 digital yuan ($31.34).
CBDC testing is in full swing in China, and it’s getting close to the end. If the number of people who checked the project’s viability was previously projected to be in the tens of thousands, it is now in the hundreds of thousands.
Two huge banks are utilized to test the system. Bank of China, as well as the Industrial and Commercial Bank of China, both of which require registration to participate in the drawing. This is something that locals may do till June 7. The winners will be notified a few days later, and they will have until June 20 to redeem the tokens they have won through one of the banks as mentioned above’ mobile applications.
This is not the first time the municipality has organized a lottery. The previous “giveaway” of tokens worth 10 million digital yuan, or $1.5 million, took place in early February this year. The government then divided the money among the 50,000 lottery winners. A big CBDC test was performed in the country’s “technology capital,” Shenzhen, a few months earlier, in the fall of 2020.
Beijing has stated that all relevant tests will be completed in time for the 2022 China Winter Olympics. Beijing’s leadership has unveiled special ATMs that will issue digital tokens to all visitors who are not Chinese nationals as part of the preparations.
So far, China has a big lead over its colleagues from other central banks throughout the world, and it is confidently pushing toward the adoption of the digital yuan.