(WSJ) – The People’s Bank of China on Sunday concluded its second digital-currency pilot program, as the central bank moves closer to a formal rollout that would make China the first major world economy to introduce such a system.
This month, authorities in the eastern Chinese city of Suzhou handed out 20 million digital yuan, equivalent to $3.1 million, to local residents via a lottery. Each of the 100,000 winners received 200 yuan in the new digital currency, which could be spent on online or offline purchases.
The Suzhou pilot included twice as many residents and three times as many merchants as one conducted in October in the southern Chinese city of Shenzhen, the first such trial of the government-backed digital currency. The trial in Suzhou also expanded the scope of the pilot program by testing the digital yuan on online stores and by introducing an electronic payment method that doesn’t require an internet connection.
Wang Ju, a 39-year-old Suzhou resident who was selected to participate in the pilot, was impressed to find a pastel-colored replica of a yuan banknote featuring state founder Mao Zedong in her digital-wallet app after following the instructions. “It’s amazing,” said Ms. Wang, who spent all of her allotted currency buying enough laundry detergent to keep her family’s clothes clean for a whole year. Ms. Wang chose to spend the money at JD.com Inc.’s online shopping platform, which was offering big discounts during its annual “Double Twelve” shopping festival that began on December 12. READ MORE
