China uses the digital yuan to support the economy in certain regions of the country

The administrations of cities and regions in China, in response to the call of the Chinese government, launched a series of lotteries, whose participants can win digital coupons for free e-CNY.

At a nationwide video conference, Chinese Prime Minister Li Keqiang urged leaders of provinces, municipalities and rural areas to accelerate the implementation of infrastructure projects, increase the number of jobs and restore economic growth in areas affected by restrictions during the coronavirus pandemic.

The Chinese authorities will issue a series of digital yuan to stimulate the economy in regions that have been hit hardest by restrictions related to the COVID-19 pandemic. As part of this initiative, the Shenzhen City Government launched lottery with a fund of 30 million digital yuan ($4.5 million). Residents of the city were given the opportunity to win “red packages” with free 88, 100 and 128 digital yuan.

“Red packets” in China and other Asian countries are cash gifts in red envelopes given on special occasions. For China’s central bank digital currency (e-CNY), they are distributed as digital coupons.

The Xiong’an region, a special economic zone southwest of Beijing, has also begun distribute “Red Packets” entitling to receive free e-CNY as part of its plan to improve the consumer ability of the population with a total fund of 50 million digital yuan.

Formerly Municipality of Nansha City in Guangzhou declaredwhich will give out 10 million digital yuan in “red packages” for the development of catering and retail businesses, but the exact launch date of this initiative has not yet been announced.

In February, the city of Suzhou distributed 200 digital yuan (about $31) to 150,000 residents of the city through a lottery. The winners spent the money between February 10 and 26 at stores that accepted digital yuan.