Digital Yuan lottery for Beijing residents - TCR

• Digital Yuan to be distributed in Beijing via a lottery system where resident can apply on two banking applications provided by the government 
• It aims to rollout 40 million renminbi in 200,000 red packets which contain 200 Yuan each 
• The digital Yuan will be centrally regulated making it different from the way cryptocurrencies function 

Beijing residents will now be able to take part in the lottery for allocation of digital Yuan by the government. Last year, the technology hub of Shenzhen conducted its own lottery program for the smooth disbursal of digital currencies. In 2021, the southwestern city of Chengdu distributed 40.2 million digital Yuan with the help of a similar process. The digital currency which was in development since 2014 is yet to be rolled out across the country. Furthermore, the government deems it fit to strategically build the process of allocation. 

Beijing Winter Olympics 2022 in sight 

Digital currencies have been globally accepted this year and new entrants increased at a brisk pace. The world’s second largest economy imposed sanctions 10 days ago to prohibit mining and trading of cryptocurrencies in the country. It cited that it was harmful for the environment and a breeding ground for illicit activities. Moreover, the government was planning its own digital currency due to which it had to curtail the presence of its future competitors. 

With the help of the digital Yuan, residents will be able to purchase/sell products of their choice throughout the country. Its successful implementation also paves the way for international tourists to use it during the 2022 Beijing Winter Olympics. It will be a massive boost to its already mammoth economy. International trade will be strengthened and smart contracts will develop among the masses. 

CBDC poised to digitize coins and bank notes

Along with the aim of an efficient financial system, China’s CBDC program will also help digitize banknotes and coins present in the economy. Furthermore, the deputy governor of the People’s Bank of China (PBOC) iterated that the existence of a digital Yuan does not compete with the US dollar. International trade will receive the much needed boost after it suffered miserably due to the pandemic. 

Investments via digital Yuan will increase as people will have more faith in the central bank’s digital currency program. The bank will regulate the demand and supply of the currency which makes it different from cryptocurrencies like Bitcoin and Ethereum. A centralised financial system will keep scammers at bay and prevent felonies of any kind. Its growth is beneficial for the society and citizens of the world at large.