The city of Changzhou in China is making strides in the adoption of central bank digital currency (CBDC) by giving away $700,000 worth of digital yuan tokens and coupons.
This initiative aims to boost CBDC spending during an upcoming citywide shopping festival. Residents will have the opportunity to receive digital red envelopes containing e-CNY, allowing them to enjoy discounts and make purchases using the digital currency.
Changzhou plans to distribute digital red envelopes as part of its second round of giveaways. These envelopes will contain a total value of approximately $700,000 worth of digital yuan tokens and coupons.
By leveraging the symbolism of red, which represents good fortune in Chinese culture, the city aims to encourage the use of CBDC during the shopping festival.
The coupons distributed in the red envelopes will provide discounts for specific purchase amounts. Some coupons offer a 30 yuan ($4.30) discount for purchases worth up to 100 yuan ($14), while others provide a 50 yuan ($7) discount for purchases totaling 200 yuan ($28).
The tokens and coupons will be issued through a lucky draw, and interested residents are required to register via the My Changzhou app developed by the city’s government.
The event will take place from July 16 to July 20, and approximately 10,000 residents will receive digital yuan tokens and coupons starting from July 21.
To participate, residents need to open personal digital yuan wallets. Changzhou’s major shopping centers, including the Changzhou New Century Mall, theme parks, supermarket chains, and department stores, now accept payments in the CBDC, providing residents with a wide range of opportunities to utilize their digital yuan.
It is important for residents to note that the digital yuan tokens and coupons have an expiry date. To enjoy the discounts, residents must utilize the coupons by August 10.
The central bank has also introduced a SIM card-based CBDC wallet solution, enabling users to make transactions even when their phones are powered down.
Additionally, DBS Bank’s Chinese branch recently launched a merchant collection service for its corporate clients, further expanding the acceptance and usability of CBDC.