China's CBDC will be distributed in Shenzhen as part of public trials

Monday 12 October 2020 12:21 CET | News

The Chinese city of Shenzhen has announced plans to distribute over 10 million yuan in China’s upcoming digital currency as part of public trials.

The move would help stimulate public consumption and test demand for the Chinese digital currency, officially called the Digital Currency Electronic Payment (DCEP). Shenzhen's Luohu District will distribute the DCEP to 50,000 recipients through a ‘lottery’ system, according to Decrypt. Recipients can avail the lottery on wallets developed by local banks, including the People’s Bank of China.

Consumers can then use the digital currency at a reported 3,389 merchants, such as restaurants, supermarkets, gas stations, metro stations, department stores, and other everyday businesses. Similar pilot runs of the DCEP have already been conducted in the Guangdong-Hong Kong-Macao Greater Bay Area, of which Shenzhen is a part.

So far, the People’s Bank of China (PBoC) has processed over three million transactions—worth 1.1 billion yuan as part of its trial of the DCEP (Digital Currency, Electronic Payment). Not only this, Chinese businesses like local ridesharing company DiDi started DCEP tests for taxi payments in July 2020.

The tests are part of China’s broader plans to incorporate digital currencies within its economic framework, as it looks to reduce its reliance on the US dollar. Reports suggest the country plans to fully launch the DCEP before the start of the 2022 Winter Olympics in Beijing, the online publication added.

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Keywords: digital currency electronic payment, wallets, digital yuan, merchants, trials, payments digitalisation, DCEP, CBDC, China
Categories: DeFi & Crypto & Web3
Countries: China
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