Starting on October 9, around 50,000 Chinese citizens will be able to go shopping with digital yuan.
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- The People’s Bank of China has been developing a sovereign digital currency since last year.
The People’s Bank of China launched the $ 1.5 million free distribution pilot program as part of the digital yuan trials, Sina Finance reported.
The Shenzhen Municipal Cyberspace Administration organized a lottery among 50,000 randomly selected people to distribute 10 million e-yuan ($ 1.5 million). Winners will have access to a 200 yuan ($ 30) bag of digital currency, which can be spent between October 12 and 18 at one of the 3,389 authorized outlets.
The cryptocurrency cannot be transferred to someone else’s account, nor can it be converted into cash. Unspent funds will be withdrawn from the bags after October 18.
The People’s Bank of China has been developing a sovereign digital currency since last year. But it is not the only one: The seven major central banks in the world – including the Federal Reserve – and the Bank for International Settlements are considering the possibility of issuing their own digital currency that coexists with cash.