The Chinese Shenzhen Municipal Bureau of Commerce has announced that it will distribute 30 million digital yuan worth about $4.5 million in a lottery to mitigate the impact of lockdowns.
The drop will be conducted through a red envelope lottery, where participants can win 88, 100, or 128 digital yuan starting from May 30.
Shenzhen municipal department has partnered with institutions including the Bank of China, China Construction Bank, Agricultural Bank of China, and WeChat in the airdrop.
Several other districts in China, including Nansha, are reportedly working on similar initiatives of up to 10 million digital yuan to boost the retail and hospitality sectors.
The pandemic has caused China’s administration to impose lockdowns, which has affected businesses. Citizens have reportedly opposed the restrictions.
The Digital renminbi is reportedly progressing in China and is currently being used in multiple districts. The use of cryptocurrencies remained banned despite a recent ruling by the country’s high court that the law protected digital assets.
Source: Eastmoney.com
