February 7, 2023

Chinese Cities Launched Digital Yuan Activities Worth $26.6 Mln in Spring Holidays

Chinese Cities Launched Digital Yuan Activities Worth $26.6 Mln in Spring Holidays Featured Image

digital yuan

Chinese cities, such as Lianyungang, Jinan, and Shenzhen, launched nearly 200 digital yuan activities worth more than 180 million yuan ($26.6 million) to promote its usage during the Spring Festival holidays.

The activities included consumption coupons, subsidies, and other programs in a move by the authorities to encourage the mass adoption of digital yuan, known as e-CNY, during one of the largest holidays in the country, according to CryptoPotato.

Jinan, Lianyungang, and Hangzhou in the eastern provinces issued digital yuan coupons during the holiday period through which their citizens can buy goods during the holiday period. Companies also launched various commercial activities for the residents, covering aspects of transportation, tourism, and mobile communications in addition to paying bills at supermarkets.

It is worth mentioning that the usage of digital yuan is rapidly increasing in recent years. During the country’s implementation of anti-COVID-19 measures, many local governments handed over coupons to citizens in form of digital yuan to enhance consumption.

At the time that cryptocurrencies are prohibited in China, the interest in using e-CNY is growing. The total number of digital yuan wallets in the Asian country reached 140 million at the end of 2021, 10 million of which were corporate accounts, with transactions recording about $10 billion.

By the beginning of 2022, the total number had increased, reaching 261 million individual digital yuan wallets, while transactions grew to $13.8 billion.

The Chinese government makes use of international events and feasts to encourage digital yuan usage, like the 2022 Winter Olympic Games held in Beijing and Singles Day’s shopping festival in November 2021, a matter which pushed US lawmakers to urge the US Olympic Committee to prohibit usage of e-CNY over spying concerns.

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