- China’s Shanghai city is distributing $3 million worth of CBDC to its residents
- The city will distribute the digital funds via a lottery
- However, registration for the lottery will close today (June 6, 2021)
China’s Shanghai is the latest city to distribute China’s central bank-issued digital currency (CBDC) among its citizens. Shanghai will distribute 19.25 million digital yuan, worth about $3 million, through a lottery.
Similar giveaways have been successfully run in other Chinese cities like Beijing, Shenzhen, Chengdu, and Suzhou.
Of note, Shanghai authorities will give away 350,000 digital red envelopes with 55 digital yuan each. Shanghai residents can participate in the lottery by signing up online, based on an official post made by the city’s municipality.
Specifically, residents can use the Industrial and Commercial Bank of China’s local WeChat account to register. Residents can also use Shanghai’s Bank of Communication’s cloud service. However, registration will only be open for 2 days from June 5th to 6th.
Notably, uptake in the digital yuan giveaways has been low as Chinese citizens remain skeptical about the government’s motives. Some citizens fear that the government will use the CBDC as a means to monitor them.
In addition, the Chinese government has taken an increasingly hostile stance towards privately issued cryptocurrencies like Bitcoin. In fact, China recently banned its financial institutions from taking part in crypto businesses.
However, the supply chain blockchain, VeChain will play a critical role in helping China control its plastic waste. As such, the Asian country’s contradictory stance might another reason why CBDC uptake has been low among its citizens.
Other countries exploring CBDCs include Japan, India, and the UK.