Digital yuan, not a cryptocurrency

China is going to hand out 40 million renminbi ($6.2 million) of its digital currency to its citizens in Beijing in a lottery. According to Beijing Local Financial Supervision & Administration Bureau, if the public residing in Beijing wishes to participate in this lottery they can apply using two banking apps. The 200,000 red packets contain 200 yuan ($31). Deputy governor of People’s Bank of China, Li Bo told that the central bank is planning to expand the scope of its pilot projects which would also help foreign visitors to access it. The southwestern Chinese city, Chengdu handed out 40.2 million yuan of its digital currency while the Chinese technology hub of Shenzhen also held their lotteries. The digital yuan is not something similar to bitcoin but an effort of the Central Bank Digital Currency (CBDC) & PBOC to digitize banknotes & coins in circulation. Li stated that the digital yuan is used for domestic purposes & not to challenge the dominant U.S. dollar.

Source: CNBC


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