Shenzhen, China Prepares for Digital Yuan Giveaway
Shenzhen, China is planning to promote the adoption of the digital yuan by organizing a giveaway of e-CNY tokens. The city aims to distribute these tokens to approximately 50,000 citizens in an effort to showcase the central bank digital currency (CBDC) during upcoming sporting events. To participate in the giveaway, individuals must register their interest online and have a CBDC wallet. The distribution will be done through virtual “red envelopes,” a traditional symbol of luck in Chinese culture. Shenzhen hopes to distribute nearly $1.4 million worth of e-CNY tokens, following similar giveaways conducted in October 2020 and April 2022.
Promoting CBDC Adoption with Sports and Entertainment
In addition to the giveaway, Shenzhen plans to combine its e-CNY adoption campaign with initiatives aimed at increasing the utilization of sports stadiums, movie theaters, and tourism facilities. The city may distribute coins and e-CNY discount vouchers that can only be redeemed at sports events, theaters, exhibitions, and other similar venues. While previous efforts to promote the digital yuan in spectator sports focused on international events such as the Beijing Winter Olympics and the Universiade in Chengdu, Shenzhen intends to extend its promotion to domestic sporting events like the National Fencing Championships.
Expanding CBDC Usage in Various Events
The Asian Games in Hangzhou will serve as a significant showcase for the digital yuan as spectators will be able to use their CBDC tokens for ticket purchases. Furthermore, transportation networks around Hangzhou have started accepting e-CNY payments. Vendors in spectator zones and arenas will also allow visitors to pay using the digital currency. Shenzhen plans to leverage other international sports events held within the city, such as the Badminton World Federation China Masters in November and the China Cup International Regatta in early 2024, to drive further e-CNY adoption.
Shenzhen’s Growing CBDC Adoption
Shenzhen has recently launched iShenzhen, a “one-click reservation platform” for sports and entertainment venues. The city is also exploring additional CBDC-themed options for this platform. According to authorities, Shenzhen has already witnessed significant progress in digital yuan adoption, with 36 million CBDC wallets opened in the city and over 2.1 million merchants accepting e-CNY payments.
Hot Take: Shenzhen Takes a Proactive Approach to Promote Digital Yuan
Shenzhen’s strategy of combining giveaways, targeted promotions at sporting events, and the development of a dedicated reservation platform demonstrates its proactive approach to driving digital yuan adoption. By leveraging popular events and venues, the city aims to create real-world use cases for the CBDC and encourage its acceptance among citizens. With millions of CBDC wallets already opened in Shenzhen and a growing number of merchants accepting e-CNY payments, it appears that the city’s efforts are paying off in establishing the digital yuan as a viable payment option.
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