China is giving away 10 million yuan in its digital currency from Beijing’s central bank. Recipients can spend the digital yuan during the Chinese New Year Festival. Beijing has become the third major city in China to test the central bank’s digital currency.
50,000 people receive free digital yuan
China is actively testing its central bank digital currency (CBDC). Beijing is the next city to receive a digital yuan airdrop.
Beijing’s municipal government announced this weekend that it will hand out a total of 10 million yuan ($ 1.55 million) to 50,000 people in the city who sign up for the lottery through mobile phone apps. The results will be announced on February 10. According to CNBC, recipients will be selected from a pool of applicants, who must have a Chinese ID number or a Hong Kong, Macao, or Taiwan residence permit.
Each person will receive 200 yuan (about $ 30) in digital currency in the form of a red pack. The two previous test cities, Shenzhen and Suzhou, also distributed digital yuan among their residents in this way.
Six banks are participating in the test: Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.
From February 10 to February 17, during the Chinese New Year holiday, recipients can spend the central bank issued digital currency in designated offline locations or on sections of the e-commerce site JD.com. Beijing is preparing for more trial use of the country’s digital currency at the upcoming 2022 Winter Olympics.
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