Residents of the Chinese city of Shenzhen have made about 140,000 transactions with the digital yuan during the next citywide testing of the digital currency of the People’s Bank of China (PBOC).
In early January, the Shenzhen administration launched a “free lottery” for the second time, distributing 200 digital yuan among the city’s 100,000 residents. Local authorities said that as of January 17, 95,628 lottery participants had activated their digital RMB e-wallets and completed 139,794 transactions totaling RMB 18.22 million (about $ 2.8 million).
Unspent digital yuan will be forfeited on January 17 after testing is completed. However, members’ digital wallets will continue to function. Users wishing to fund these wallets through their bank accounts can still use them at over 10,000 merchants. Some test participants have already deposited 1.51 million yuan (about $ 232,000) in wallets.
Shenzhen conducted the first test of the NBK’s digital currency in October last year. It was attended by over 47,000 people who made 62,788 transactions for 8.8 million digital yuan. After that, the digital yuan began to be tested in Suzhou so that citizens can evaluate the convenience of the asset using various smart devices. Chinese gas stations and hospitals have also experienced the digital yuan.
To keep up with China, many central banks are trying to accelerate the development of their own digital currencies. However, the US government believes that the digital yuan could pose a threat to the country’s security and challenge the US dollar. However, the country is in no rush to issue a digital dollar. Recently, US Federal Reserve Chairman Jerome Powell stated that the country’s primary focus is on developing regulation of stablecoins.
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