Saturday, October 8, 2022

Shenzhen City Airdrops 30M Digital Yuan to Rejig Market

Local news source, Shanghai Securities News has published a piece that announces that there would be an airdrop worth about 30 million digital Yuan (e-CNY) from the Shenzhen government to its citizens. The digital distribution is targeted toward creating more cognition for the central bank digital currency (CBDC) and motivating more customers to spend e-CNY across the board.

Meanwhile, China has recently reinforced a zero-COVID policy which has impacted the financial markets and the use of its currency. The Shenzhen government has now expressed this move as a revitalization of its economy seeing that the aftermath of the coronavirus pandemic had been a regression in the digital currency use.

China’s leading shopping and delivery platform, Meituan Dianping, and the City of Shenzhen are making joint efforts to make the airdrop a reality.

As a way of registering interest in the airdrop, interested users will be made to sign up using Meituan’s platform. Thereafter, they will participate in a lottery draw where the reward will be the promised e-CNY.

After the digital currency has been claimed and acknowledged, it would then be dispersed to beneficiaries and accepted as a form of payment in over 15,000 vendor outlets where the e-CNY is recognized as a legal currency.

Challenging the Digital Yuan

There has been opposition to the use of the e-CNY on app stores, especially by other foreign economies.

The United States discourages the use of e-CNY as they perceive that it poses a threat to the American dollar. To that effect, a bill has been drafted by US senators to limit the use of the CBDC on app stores operating within the United States’ jurisdiction.

Amidst this, the digital Yuan has reasonably sprouted an interest in the Chinese economy and has gained much attention. During the past Olympic Games in Beijing, the e-CNY outshone Visa which is globally recognized as the United States electronic payment (e-payment) platform.

There is a lot of expectation and faith in the capability of the e-CNY to rejig the economy of China. This airdrop is one of the government’s efforts to lessen the effect of this zero-COVID phase on its citizens.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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