Chinese city of Changzhou distributes digital Yuan tokens and coupons worth $ 700,000 as part of the CBDC pilot project

Chinese city of Changzhou distributes digital Yuan tokens and coupons worth $ 700,000 as part of the CBDC pilot project

Changzhou, a city in China, attracts attention with its pilot project for the country's digital bank currency (CBDC), the digital yuan. The city plans to distribute digital Yuan tokens and vouchers worth around $ 700,000 during an upcoming city-wide shopping festival. Inspired by traditional practice to give away cash in red envelopes, Changzhou e-Cny are spent in "red happiness envelopes".

The distribution of the digital red envelopes began in June, and now Changzhou is preparing for the second round of the giveaways. The remaining tokens are to be distributed before the end of 2023. The latest giveaways include vouchers that grant discounts for purchases. Customers have the option of either receiving a discount of 30 yuan ($ 4.30) for purchases worth up to 100 yuan ($ 14) or a discount of 50 yuan ($ 7) for purchases with a total value of 200 yuan ($ 28). The distribution of the tokens and vouchers takes place via a raffle in which interested residents were asked to register via the My Changzhou app developed by the city government.

The event is planned for the period from July 16 to 20, whereby the digital Yuan tokens and vouchers are to be distributed to 10,000 inhabitants from July 21. Similar to initiatives in other regions, the distribution token has an expiry date. In order to benefit from the discounts, the residents have to redeem the vouchers by August 10th. In addition, the participants have to open personal digital yuan money exchanges in order to be able to take part in the event.

Changzhou is proud that several well -known shopping centers in the city now accept payments in the CBDC. This includes the Changzhou New Century Mall, themed parks, supermarket chains and department stores. This underlines the city's commitment to the introduction and integration of digital currencies into their local economy. In addition, the central bank has introduced a SIM card-based CBDC wallet solution that enables users to carry out transactions even if their telephones are switched off, which ensures even more comfort.

The efforts to introduce the Chinese CBDC not only limit themselves to Changzhou. DBS, a leading bank, has also introduced a dealership service for corporate customers in China. This illustrates the growing ecosystem around the digital Yuan, in which financial institutions recognize the advantages of integrating the CBDC into its services.

Changzhou contributes to the further development and introduction of the Chinese CBDC through the organization of these giveaways and the active promotion of the use of the digital Yuan. While the country continues to research the potential of digital currencies, initiatives like this play a crucial role in familiarizing the public with the advantages and the comfort of digital transactions.