China Distributes Digital Yuan 'Red Envelope' To Its Citizens

China gives away Digital Yuan (News.Bitcoin)

JAKARTA – In the midst of the hustle and bustle of cryptocurrencies, China actually spread 40 million Digital Yuan as much as for its citizens. The value of the Digital Yuan distributed is estimated at IDR 89.4 billion.

However, before getting the Digital Yuan, residents must first apply through a banking application to get a share of one 'red envelope' or angpau. A total of 200.000 red envelopes were distributed through a lottery mechanism, as reported by CNBC International, Wednesday, May 2.

The information was provided by China's Local Financial Administration and Supervision Bureau. Each envelope distributed will contain as much as 200 digital Yuan (approximately IDR 447.000).

Residents who get the digital money can spend it at a number of selected merchants. The digital Yuan lottery will end on June 7th.

The digital yuan is the official currency issued by the Central Bank of China, the People's Bank of China (PBoC). Where China is currently testing the use of digital money. To date, the Xi Jinping administration has not launched a digital Yuan for use by Chinese citizens.

Previously, China had tested its digital money in the city of Chengdu in February. At that time, the government distributed 40.2 million digital yuan in digital money. Apart from Chengdu, the city of Shenzhen has also felt the same way.

The Governor of the PBoC, Li Bo, said that the trial would be carried out on a massive scale. Reportedly, Yuan digital money can also be used by foreign nationals during the 2022 Winter Olympics held in Beijing.

The digital Yuan trial was carried out after the Chinese government tightened policies for cryptocurrencies at home. This decision caused the cryptocurrency market to crash in mid-May. Not long ago, China was also rumored to have banned Bitcoin mining activities in the country.