As a pilot test, Chinese Government is distributing its first digital Yuan amongst the citizens of Shenzen. Approximately US$ 1.47 Million worth of digital Yuan is proposed to be distributed under “Red Envelope”.
China has recently successfully developed its first ever cryptocurrency. A pilot test of digitalized Yuan has been initiated by Chinese Government in collaboration with the People’s Bank of China. As part of the initiative around 10 Million crypto yuan (i.e. US$ 1.47 Million) will be distributed amongst people.
It was proposed by Chinese Government that the digitalized Yuan will be initially given to the residents of Shenzhen. The residents of China’s biggest city were asked to submit applications for availing the scheme. But because too many applicants were received till the deadline was over, it was decided to initiate lottery.
Through the lottery successful candidates will be taken out who will receive crypto Yuan under “Red Envelope”. It is an old tradition in China to handover gifts on special occasions in red envelopes.
Successful applicants will be announced on the coming Sunday who will then be entitled to claim digital Yuan. The cryptocurrency can be traded of at over four thousand shops and vendors within the Shenzen City.
The distribution of digital Yuan is proposed to see the response of the general public within China. If the scheme is successful then similar schemes will be launched in different cities but that is not final yet.
However, the successful owners of the Chinese cryptocurrency won’t be able to transfer the same with any bank account.
A representative of CoinDesk also said that China is moving fast in digital world and taking a lead over US. He said that while ICOs are banned in China, it is the right time to launch Chinese digital Yuan.
China indicated that it want to embrace digital currency as its sole currency. In pursuit of this ambition, China’s efforts have been appreciated by crypto enthusiasts all over the world.
Pilot testing of Chinese digital Yuan have been undergoing since last year. On various occasions digital Yuan has been offered within the country. The aim of the promotion is to allow Chinese digital Yuan to set a foothold in the industry.