China has increased the reach of its digital yuan with its latest trial in Shanghai, the country’s financial hub.
There were 350,000 “red packets” distributed in Shanghai over the weekend, each containing 55 digital yuan (PBOC), about $9, and totaling nearly 20 million yuan, or $3 million. This is the highest number of red packets given by China in a CBDC test. Previous tests had less than 200,000 red packets.
China has more than doubled the total amount it has given away in recent months. The total is now $39 million across six cities. As of February 2021, that number is $17 million across three cities.
The six cities include Shanghai, Beijing, Shenzhen, Suzhou, Chengdu and Changsha. For Shanghai, this is the city’s first lottery campaign, although Shanghai has previously participated in crypto-yuan tests.
It can be said that this is a move that repeats after each trouble for Bitcoin in China’s bad news “tank”, in order to build the country’s own CBDC ambitions.
See more: What is Central Bank Digital Currency (CBDC)? Learn about Central Bank Digital Currency
At the end of May, the capital Beijing was the destination of a surprising CBDC trial, after the Vice Premier of China ordered a “rectification” of Bitcoin mining and trading, pushing Bitcoin miners in China. China finds its way abroad and Chinese traders have to turn to OTC amid persecution.
See more: China tested CBDC in Beijing after Bitcoin FUD, the ambition of the millennial “dynasty” revealed
And just as recently on June 6, just as China’s Weibo “purged” crypto-related accounts, Shanghai was the next choice. Given the circumstances of the recent event, the two nearest cities are China’s leading major economic centers. But, the solution for CBDC: The mystery comes from China or is it just a “fox in sheep’s clothing”? partly answered.
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