Residents of Longhua District in the Chinese city of Shenzhen will have the opportunity to participate in an upcoming lottery event that aims to encourage the adoption of the country’s new digital central bank, also known as the DC / EP, digital renminbi or digital yuan.
Announced On January 20, the raffle is scheduled for January 26, when lottery tickets will be drawn to select the 100,000 winners who will each receive a festive “red envelope” package containing 200 yuan ($ 31) in DC / EP. The total currency spent and distributed for the event will therefore be 20 million yuan ($ 3.1 million) in value.
There are two conditions placed on residents who wish to participate in the lottery: they must have purchased social insurance from the commercial entities they work for and have clear plans to stay in the city during the upcoming Lunar New Year holiday, also known as Spring Festival.
These terms restricting the lottery to employees at participating commercial entities make this round somewhat different from the two previous “red envelope” promotional lotteries held in two other districts in Shenzhen city: in the Luoho district in October 2020 and the Futian District in January 2021.
As with the previous schemes, the donated currency can be replaced by select traders who have already signed up for the digital yuan system – 35,000 traders in total – over a one-week period between February 1 and 9. Winning entrants will not be able to transfer their red envelope to a third party.
In the announcement for the scheme, local media presented the event as part of ongoing pilots of the new currency, as a means to promote its adoption and as a way to encourage Shenzhen workers to stay in the city for the Lunar New Year festival as part of action to combat the COVID-19 epidemic.
As reported, previous lottery pilots were deemed successful, with the vast majority of participants successfully completing and expenses their digital currency red envelopes. Following a slightly differently configured pilot project held in Suzhou city last year, e-commerce companies similarly reported a significant number of transactions using the digital yuan.
Last week, the state-owned Agricultural Bank of China launched the first digital yuan ATMs in the country with the aim of guiding citizens in converting to and from the digital currency.