(ETH) – China has just launched one of the largest real-world trials for its digital currency pushing closer toward creating a cashless society.
In the latest report, The government in Shenzhen performed a lottery to give away a total of 10 million yuan (about $1.5 million) worth of the digital currency. A shocking number of nearly 2 million people have reportedly applied and 50,000 people actually won.
The winners of this lottery can now download a digital renminbi app to receive the digital yuan and spend it at over 3,000 merchants in a particular district of Shenzhen. This location is said to be China’s technology hub and home to some of the country’s largest tech giants including Huawei and Tencent.
The report stated that Local supermarkets and pharmacies are included among the participating merchants as well as Walmart. This is all happening as China has been pushing toward a cashless society for some time now and the digital yuan is not a cryptocurrency like bitcoin.
Instead, it is issued and controlled by the People’s Bank of China, the country’s central bank. According to CNBC, “It is not looking to replace digital wallets like Alipay or WeChat Pay. It will likely work together with them and other banks”.
China isn’t alone in these endeavors as Central banks around the world are reportedly exploring the idea of issuing digital currencies. The Bank for International Settlements and seven central banks recently published a framework for central bank digital currencies or CBDCs.
