The People's Bank of China and a district of Shenzhen are to hand out 10 million digital yuan (worth around $1.5 million) as "red envelope" gifts to citizens.
- The initiative comes as another pilot of the in-development digital currency, which has been in trials with commercial entities and state-owned banks.
- Red envelopes are a traditional way of gifting cash in China on holidays or for special occasions such as weddings.
- According to a report from Sina.com.cn, the pilot will see 50,000 successful applicants each receive 200 of the digital yuan.
- They can be spent at 3,389 stores that are set up to transact in the digital currency.
- Anyone living in Shenzhen can apply for the gift from Oct. 9.
- The pilot is being help by the central bank in partnership with Luohu District, Shenzhen, which is funding the effort.
- The report suggests the pilot is an indication the digital yuan is close to being launched.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.