The Chinese government is determined to accelerate the roll-out of its central bank digital currency (CBDC) by giving out millions of dollars’ worth of the digital yuan (e-CNY) during the 2021 Spring Festival.
This is part of the Chinese government’s efforts to stimulate the economy and promote the use of the digital currency.
In May 2022, Shenzhen, Guangzhou, and Xiong’an gave out 90 million digital yuan in red packets. During the 2023 Spring Festival, cities across China have given out 180 million digital yuan (e-CNY) worth over $26.6 million in the form of subsidies and consumption coupons.
Hangzhou has given each resident an 80 Yuan ($12) e-CNY voucher, while Shenzhen has given out 100 million Yuan — worth $14.7 million in e-CNY — to subsidize the costs of the catering industry.
The Chinese government is also taking measures to ensure the privacy of its users. Central Bank executive Mu Changchun has said that the country would respect users’ privacy and protect their personal information.
This is a welcome step as the use of digital currencies is increasing.