Several Chinese cities are giving away digital yuan to residents as part of a nationwide experiment to promote the country’s upcoming digital currency.
The giveaway is seen as a way to get the Chinese people acquainted with the new currency and promote its use. The Chinese central bank, the People’s Bank of China, is expected to launch the digital yuan in early 2021.
The cities participating in the giveaway include major metropolises such as Shanghai, Shenzhen, Suzhou, and Xiongan. The amount of digital renminbi (RMB) or “digital yuan” being given away varies by city but has ranged from 10 yuan (USD $1.50) to 200 yuan (USD $30).
Recipients must download a mobile wallet to receive the digital currency. They can then use it to buy items at special designated stores and businesses, including supermarkets, pharmacies, and convenience stores.
The Chinese government is hoping that the giveaway will help people become more comfortable using the digital yuan at regular stores and get more merchants on board.
The pilot is part of the central bank’s larger plans to take China from a cash-based economy to a digital economy. The digital yuan will eventually replace cash as the main form of currency, making consumer payments more efficient.
