China: Launch of a new feature on the digital yuan

In December, a former senior Chinese central bank official revealed that CBDC adoption was low. He said the test results from the e-CNY were “not not ideal“. According to him, the use of the digital yuan has been low and very inactive. At the time, the Chinese government did not acknowledge the facts. Yet recent e-CNY promotion measures show that it is trying every means to improve the adoption of the digital yuan.

200 activities launched to drive local CBDC adoption

If cryptos are on the rise in China despite their ban, this is not the case for CBDCs. Yet the government has tried to get them accepted in different ways. Recently, he decided to try a new method of distributing digital yuan to the people. He really hopes that this solution will boost the adoption of the digital yuan across China.

Several Chinese municipalities have made e-CNY available to their inhabitants for the holiday season. The distribution of digital currency happened precisely during the Lunar New Year period. Authorities distributed CBDC through programs like consumption subsidies and coupons. That’s whathas indicated a report published on February 6 by theGlobalTimes.

The Chinese state is keen on wider adoption of its CBDC

The report also states that the government has launched around 200 “activitiesfor e-CNY during the holiday season. The various activities were obviously launched for the promotion of the use of the digital yuan. Also, on this occasion, more than 180 million digital yuan has been donated To the population. This amount of Chinese CBDC currency is equivalent to $26.5 million.

For example, the local government of Shenzhen subsidized the catering industry in its city with e-CNY. For this purpose, he distributed more than 100 million yuan, which is equivalent to 14.7 million dollars. At the same time, the Chinese city Hangzhou offered a voucher of 80 e-CNY, or 12 dollars, to each of its inhabitants. The operation, carried out on January 16, cost the municipality about 4 million yuan, or $590,000.

In January, the Chinese government wanted to boost the use of the CBDC by adding a new feature on the digital yuan wallet. The latter allowed users to make contactless payments with their Android phones, even without a connection or electricity.

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