The Chinese government distributed more than $26 million in e-CNY to Shenzhen, Jinan, Lianyungang, and Hangzhou residents.During the Spring Festival, major Chinese cities such as Shenzhen, Jinan, and Lianyungang reportedly launched approximately 200 activities involving the digital yuan.
The authorities hope to increase the asset’s adoption during one of the country’s busiest holidays.
China Maintains Its CBDC Efforts
According to recent reports, the local government began digital yuan activities worth more than 180 million yuan ($26.5 million) in several cities to encourage usage during the Spring Festival (a seven-day holiday that marks the beginning of “the Year of the Rabbit”).
Shenzhen (a city in South China with a population of nearly 13 million) officials distributed 100 million digital yuan ($14.7 million) to help the domestic catering industry.
In the east, Jinan, Lianyungang, and Hangzhou introduced digital yuan coupons that residents can use to purchase goods during the holiday season. Hangzhou residents appeared to be the most interested, taking all the provided funds in less than ten seconds.
Commercial institutions also participated in the promotions, allowing customers to pay bills in supermarkets, transportation, and tourism through e-CNY.
China’s efforts to increase CBDC adoption have reached Chengdu and Beijing’s capital. The former’s residents received $4.6 million at the start of 2021, while the latter received $6.2 million several months later.
Payments in Digital Yuan on Singles Day
JD.com, one of the largest Chinese e-commerce platforms, allowed customers to settle bills in e-CNY during the Singles Day shopping festival in November 2021. Over 100,000 people took advantage of the promotion.
Singles Day is an unofficial Chinese holiday in which those who are not in a romantic relationship are honored. It has become the busiest shopping day in the country.
CBDC Expansion
With cryptocurrency banned in China, interest in domestic CBDC is growing. According to CryptoPotato, the number of RMB digital wallets in the most populous country reached 140 million by the end of 2021, of which 10 million were corporate accounts. E-yuan transactions reached nearly $10 billion. At the beginning of 2022, there were 261 million personal digital yuan wallets, and the number of transactions increased to $13.8 billion.
The Chinese government has approved the product for use during the 2022 Beijing Winter Olympics. Sources said players and attendees spent $300,000 worth of electronic yuan every day during the tournament.
This initiative has previously caused tension between the two economic superpowers, China and the United States. Senators Marsha Blackburn, Roger Wicker, and Cynthia Loomis urged the US Olympic Committee to ban the use of electronic comforts on the grounds of espionage. China’s Ministry of Foreign Affairs has demanded that Americans “keep the spirit” of the game and not engage in cash prizes they are unaware of.
