Chinese city host the lottery that attempts to promote demand for the new digital yuan DC/EP

According to Dan Wang, the chief economist at Hang Seng Bank (China), the officials in Luohu District, Shenzhen, are set to give out as much as 10 million Yuan ($ 1.49 million) to residents in the form of China’s long-in-the-making digital currency DC/EP for a week-long trial run.

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Chinese city to host digital currency lottery as part of DC/EP trial

China plans to move toward a more cashless society with the digital yuan – officially called the Digital Currency Electronic Payment (DC/EP) – as early as this year. The back-of-envelope calculations predict the 10 million Yuan program will generate 50 million Yuan in total demand.

Luohu officials said:

“Luohu intends to disseminate 50,000 digital red packets or gift pouches. Each packet will contain 200 Yuan ($ 30).”

Chinese residents living in Shenzhen must register for the lottery through iShenzhen, a blockchain-based application run by the Shenzhen government, to be eligible to win. Officials will announce lottery winners on Sunday, who must open an e-wallet via the Digital Renminbi App to claim their funds.

Officials in the Luohu district hope the distribution will boost local consumption, as 3,389 designated stores in Luohu will accept cryptocurrencies from October 12 to 18.

China has been working on a digital currency since 2014. The Monetary Research Institute of the People’s Bank of China has filed 65 patents from 2017 to 2019. Two of these patents suggest that one of the biggest features behind digital currency transactions will have controlled anonymity, which can be interpreted as two parties remain anonymous to each other during the transaction.

In January, the People’s Bank of China said it had finished the digital currency’s top-level design. It then had to follow principles of stability, security, and control, and that the digital currency was progressing smoothly.

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