China Plans $700,000 Digital Yuan Token and Coupon Distribution

by Nik Asti

Published: July 17, 2023 at 5:00 am Updated: July 17, 2023 at 4:17 am

by Danil Myakin

Edited and fact-checked: July 17, 2023 at 5:00 am

In Brief

Changzhou is giving away $700,000 worth of digital yuan tokens and coupons to promote CBDC spending during an upcoming citywide shopping festival.

The Chinese city of Changzhou plans to distribute digital yuan tokens and coupons worth $700,000 by the end of 2023. This initiative is part of the ongoing trial of China’s central bank digital currency (CBDC). The initiative aims to stimulate spending of e-CNY during an imminent citywide shopping festival by issuing these digital currencies in “lucky red envelopes,” a symbol of good luck in Chinese culture.

China Plans $700,000 Digital Yuan Token and Coupon Distribution

Traditionally, businesses and older family members give red envelopes filled with cash to employees and younger relatives during public holidays. Changzhou began the digital iteration of this practice in June. The city is now preparing for the second wave of giveaways, which will account for the aforementioned sum.

The forthcoming round of giveaways will include coupons that offer 30 yuan ($4.30) discounts on purchases up to 100 yuan ($14), or 50 yuan ($7) discounts on purchases worth 200 yuan ($28). These tokens will be awarded via a lucky draw, and residents are encouraged to register their interest via the city government’s My Changzhou app.

China’s Ongoing CBDC Adoption Efforts

The token giveaway event is scheduled from July 16 to July 20. Approximately 10,000 residents will receive digital yuan tokens and coupons starting July 21. Like many such promotions, these tokens will have an expiry date, and residents must use their coupons by August 10 to take advantage of the discounts.

To join the event, participants must set up their personal digital yuan wallets. Changzhou’s major shopping centers, including the Changzhou New Century Mall, various theme parks, supermarket chains, and department stores, now accept payments in the CBDC.

Earlier this month, China’s central bank launched a new CBDC wallet. It’s a SIM card-based system. Uniquely, it works even when mobile phones are off. Also, the Chinese DBS Bank branch has news. They have started a merchant collection service for corporate clients. This move is another step in China’s persistent push for CBDC adoption.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti