Changzhou City in China to Give Away $700,000 in Digital Yuan Tokens and Coupons

The city of Changzhou, China, is taking part in the nation’s central bank digital currency (CBDC) pilot by giving away $700,000 worth of digital yuan tokens and coupons.

The initiative aims to promote CBDC spending during an upcoming citywide shopping festival by distributing e-CNY in lucky red envelopes, a symbol of good fortune in China.

This move is part of Changzhou’s efforts to further integrate the digital yuan into its local economy and enhance the adoption of the central bank’s digital currency.

Changzhou started distributing digital red envelopes in June and is now gearing up for a second round of giveaways. The planned distribution will involve approximately $700,000 worth of digital yuan tokens and coupons before the end of 2023.

The coupons will provide discounts of either 30 yuan ($4.30) for purchases worth up to 100 yuan ($14) or 50 yuan ($7) for purchases worth 200 yuan ($28).

The tokens will be issued through a lucky draw, and residents are encouraged to register their interest via the My Changzhou app, developed by the city’s government.

The digital yuan giveaway event will take place from July 16 to July 20, and around 10,000 residents will receive digital yuan tokens and coupons starting from July 21.

However, it’s important to note that the tokens will have an expiry date, and residents will need to utilize the coupons by August 10 to avail of the discounts. To participate in the event, residents must open personal digital yuan wallets.

Furthermore, the city highlighted that several major shopping centers in Changzhou now accept payments in the CBDC.

These centers include the Changzhou New Century Mall, theme parks, supermarket chains, and department stores. The growing acceptance of digital yuan in various sectors of the city’s economy contributes to its widespread adoption and use among residents and businesses.

China’s central bank has been actively exploring various avenues to enhance the usage and accessibility of the digital yuan.

Recently, they unveiled a SIM card-based CBDC wallet solution that can be used even when phones are powered down, making transactions more convenient for users.

Additionally, the Chinese branch of the bank DBS launched a merchant collection service for its corporate clients, further promoting the adoption of the digital yuan in commercial transactions.