Shenzhen give-away 10 million yuan DC/EP, will President Xi Jinping continue to speak on the market?

Chinese President Xi Jinping plans to visit Shenzhen this week to attend the 40th anniversary of the special economic zone’s establishment. Accordingly, the city of Shenzhen is also planning to donate a total of 10 million yuan ($ 1.49 million) of DC/EP – the central bank’s digital currency (CBDC) to 50,000 residents. Does this event remind you of any images? That was last year’s “Xi Jinping” effect, at the time when he made his speech in favor of Blockchain. At that time, coins originating from China, such as Neo, Tron (TRX), grew very strongly.

Does President Xi have any similar statements that are enough to cause a pump like last year?

The ceremony is scheduled to take place on Thursday, and Mr. Xi can arrive in the city of Guangdong province as early as Tuesday. President Xi is expected to reiterate Beijing’s commitment to the “open door” policy and further outline the direction of China’s “Silicon Valley” amid ongoing tensions with the United States.

The conference will see the blueprint for China’s 5-year plan from 2021 to 2025. The plan will also present the roles of Hong Kong and Macau in the nation’s economic development. Shenzhen was designated a special economic zone on August 26, 1980. Mr. Xi last visited Shenzhen in October 2018 and stressed that the reform and the opening-up process would continue. His visit to Shenzhen will also demonstrate his importance in examining his plan to present himself as an “exemplary socialist city.”

At the same time last year, according to a report by the Xinhua News Agency (China’s official media), Chinese President Xi Jinping gave a speech:

“Emphasize that the integrated application of blockchain technology plays an important role in technology innovation and industrial transformation.”

As reported by the press:

“The Chinese President pointed out that the application of blockchain technology has extended to digital finance, Internet of Things (IoT), smart manufacturing, supply chain management, digital asset transactions, and many other fields. Currently, major countries in the world are accelerating the development of blockchain technology. China has a good foundation in the blockchain sector. There is a need to accelerate blockchain technology, industrial innovation, and actively promote blockchain development and economic and social integration.”

As can be clearly seen, Xi Jinping’s statements focus on blockchain technology, not decentralized cryptocurrencies like Bitcoin (which China still does not approve of). However, it seems that China will focus on developing and launching a national digital currency. And a year later, this DC/EP national cryptocurrency is expected to be launched soon. Will President Xi continue to make life-long statements like this time, making the cryptocurrency market once again to receive big and positive waves? Let’s wait and see!

Shenzhen will donate 10 million yuan of DC/EP digital to 50,000 residents

One of China’s major cities – Shenzhen 0, is donating 10 million yuan ($ 1.49 million) of DC/EP – the central bank’s digital currency (CBDC) this weekend. Recipients can use them at 3,389 stores next week.

This is part of the digital yuan pilot program underway in several major cities in China and is the first public test of the digital currency. Shenzhen, known for its popular shopping destinations, is a modern urban city in southeastern China that connects Hong Kong to China’s mainland.

The DC/EP awarding will be done by a lottery in the Luohu district of Shenzhen. The winner will receive a digitized “red pack” containing 200 yuan of the digital currency. Those living in Shenzhen can apply for the lottery starting Friday through iShenzhen, a blockchain service run by the Shenzhen government.

DC/EP can be used at 3,389 designated stores in the Luohu district from 12-18 October, including Sinopec gas stations, Walmart stores, CR Vanguard mall, and Shangri-La hotel. The only problem is that the receiver cannot pass on their lucky money to someone else.

China Citic Bank International chief economist Liao Qun believes that donating the digital yuan will increase digital currencies to some extent. Hang Seng Bank (China) chief economist Dan Wang agrees that every yuan given is likely to generate more revenue.

He said:

“An overall calculation will show that this 10 million yuan program will generate a total demand of at least 50 million yuan.”

PBOC Vice Governor Fan Yifei recently revealed that the DC/EP digital yuan had been used in 3.13 million transactions worth about 1.1 billion yuan. The Shenzhen government recently rewarded approximately 5,000 medical and healthcare workers dealing with the Covid-19 pandemic with digital yuan.

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