The world’s leading initiator of central bank digital currency ‘China’ has hitherto allocated up to $40M in the form of digital yuan in red covers. The five prominent cities are the target for the marketing of the central bank digital currency (CBDC), keeping the priorities of the regional development in view.
The commencement of the Red Envelope scheme
The RMB’s (the CBDC of China) experimental execution is progressing rapidly in China. Currently, it’s the eighth year of project development incorporating across-the-board experiments nationwide and some international tests, including Hong Kong. It was started initially in 2014. To put digital yuan into the pockets of the Chinese customers, a campaign called ‘red envelope’ has been started by the central bank of the country. Tuoluo Research Institute has done research which claims that the quantity of currency transacted to the residents of China through red envelopes containing RMB has crossed $41.5M, equal to nearly 269M yuan.
Traditionally, red envelopes having money inside them are given to the family members, colleagues, or children as a sign of wishing good luck according to the Chinese custom. This is because, in China, the red color is connected with happiness and vitality.
‘8btc’ the Chinese news outlet for cryptocurrency, published an article which reveals that the authorities are currently focused on the five most important cities, including Shanghai, Chengdu, Beijing, Suzhou, and Shenzhen, regarding the promotion of the native digital currency and 230M yuan (roughly $35M) have been distributed in these regions.
Rapid adoption in China
Some regional advancement objectives have been taken into consideration by the central Chinese government, and the extent, as well as the promotion frequency, is spiking high, as stated by the report. For instance, the program of digital RMB in Beijing, which seems to have opened a lottery distributing 40M digital yuan equal to $6.3M, is predominantly focused on the Olympic Games of winter in 2018.
A remarkable development has been made by the two pilots in the capital of China. In the initial project, the payments of the digital currency were accepted by the chosen merchants from JD.com (an online marketplace) and the business district ‘Wangfujing.’ The second one aims at the entertainment, commerce, travel, informational scenes, transit, accommodation, and food requirements regarding the winter Olympics of Beijing to be held in 2022.