China’s digital renminbi is preparing to start a large-scale test. The Shenzhen Internet Information Office announced last night that the local municipal government and the People’s Bank of China will cooperate with the People’s Bank to distribute 50,000 digital renminbi benefits so that the acquired users can spend at designated merchants in Luohu District. This move hopes to test during the research process and stimulate consumption during the COVID-19 epidemic.
The People’s Bank of China started to conduct internal tests on the central bank’s digital currency (DC/EP, also known as the digital renminbi) in Shenzhen, Suzhou, Xiong’an and Chengdu this year, mainly for use by some government and bank personnel. However, this time the launch of the “Limited Lo Wu Promotion of Consumption” event in Shenzhen is the first time that digital RMB is introduced into the public domain and a large-scale application scenario experiment is launched.
According to the official announcement, this event involved about 10 million yuan (RMB, the same below), and each bonus was 200 yuan, and a total of 50,000 bonuses were distributed. Users can participate in the lottery starting today. Winners can download the “Digital RMB APP” via SMS, activate their personal e-wallet, and then receive the bonus. From October 12th to 18th, users spent in 3389 merchants in Luohu District that has completed the transformation of the digital RMB system. The merchant types include supermarkets, catering, and living services. Unused profits will be recovered after the validity period.
Central banks around the world continue to promote the development of central bank digital currency, and according to current relevant data, the People’s Bank of China is temporarily leading in this area. In particular, this test is officially included in the public, not just by relevant internal personnel. This may be a pilot test for the future Winter Olympics to examine the application of digital RMB in large-scale retail consumption and other application scenarios. The circulation of funds and technical operations.
Other countries or regions, such as South Korea and the Eurozone, also announced earlier that they plan to start testing central bank digital currencies next year. The purpose of active research by central banks in various regions is to explore how to adapt the legal currency to the new environment in addition to the rapid changes in technology and consumer habits that are gradually changing. At the same time, in the face of cryptocurrencies issued by other countries and even private companies, it is also necessary to maintain its own currency sovereignty to avoid being invaded by other new types of digital.