{"id":19580,"date":"2023-02-05T22:39:59","date_gmt":"2023-02-06T06:39:59","guid":{"rendered":"https:\/\/coinnetworknews.com\/china-doles-out-millions-in-digital-yuan-in-bid-to-boost-adoption-report\/"},"modified":"2023-02-05T22:39:59","modified_gmt":"2023-02-06T06:39:59","slug":"china-doles-out-millions-in-digital-yuan-in-bid-to-boost-adoption-report","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/china-doles-out-millions-in-digital-yuan-in-bid-to-boost-adoption-report\/","title":{"rendered":"China doles out millions in digital yuan in bid to boost adoption: Report"},"content":{"rendered":"
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Millions of dollars worth of China\u2019s Central Bank Digital Currency (CBDC<\/a>) has been handed out across the country over the Lunar New Year period in a bid to boost its takeup.<\/p>\n

According to a Feb. 6 report<\/a> in the Global Times, an English-language outlet of the state-ran People\u2019s Daily newspaper, around 200 \u201cactivities\u201d for the e-CNY were launched across the country during the holiday period. <\/p>\n

These “activities” were made to \u201cpromote consumption\u201d \u2014 the first of such since the government recently relaxed COVID-19 restrictions.<\/p>\n

Multiple cities reportedly gave away over $26.5 million, or 180 million yuan worth of the CBDC in programs such as subsidies and consumption coupons.<\/p>\n

One example provided by the outlet included the Shenzhen local government handing out over $14.7 million (100 million yuan) worth of e-CNY to subsidize the catering industry in the city.<\/p>\n

A QR code (blurred) for paying with digital yuan is displayed at a Chinese convenience store, users can scan the code and use e-CNY to pay for goods. <\/em>Source<\/em><\/a><\/figcaption><\/figure>\n

A Feb. 1 China Daily report<\/a> said Hangzhou issued each resident a $12 (80 yuan) e-CNY voucher on Jan. 16 with the total giveaway costing the city around $590,000, or 4 million yuan.<\/p>\n

Some of these initiatives proved to be very popular among residents.\u00a0<\/p>\n

Citing data from the e-commerce platform Meituan, the Global Times rreport stated that e-CNY given away by the Hangzhou city government for the New Year celebrations was taken up by residents within nine seconds.<\/p>\n

Related: <\/em><\/strong>Bank of China ex-advisor calls Beijing to reconsider crypto ban<\/em><\/strong><\/a><\/p>\n

The last few months has seen the government enact other targets and features to boost the usage of the CBDC.<\/p>\n

On Feb. 1, senior ruling party officials in Suzhou city<\/a> set a tentative key performance indicator for the end of 2023 to have $300 billion (2 trillion yuan) worth of e-CNY transactions in the city.<\/p>\n

The target is ambitious considering cumulative e-CNY transactions had crossed $14 billion<\/a> (100 billion yuan) in October 2022, two years after the CBDC\u2019s launch.<\/p>\n

In late December last year, in a bid to attract new users the e-CNY wallet app introduced the ability<\/a> to send \u201cred packets,\u201d called hongbao<\/em> in China, which is used for gifting money around the holidays.<\/p>\n

The wallet app received an update<\/a> in early January allowing users to make contactless payments using Android phones \u2014 even if their device is without internet or power.<\/p>\n

In December, a former Chinese central banker called the results<\/a> of the e-CNY trials \u201cnot ideal,\u201d and admitted, \u201cusage has been low, highly inactive.\u201d<\/p>\n