China is on the verge of completing trials and pilot programs for its national digital currency for the Yuan, which they are calling DCEP. The CBDC, which has been under development for over half a decade, is currently being put to the test through various government subsidies and as a form of payment in selected provinces in the country.
During the ongoing pilot run, the Shenzhen province has emerged as the largest spender of the digital yuan. As per a published report in South China Morning Post, over 47,000 consumers in Luohu district of Shenzhen province spent a total of 8.8 million yuan (equivalent to $1.3 million) during the week-long trial run for the digital asset.
As per the report, for one of the largest trial runs conducted by the People’s Bank of China, a total of near 2 million people applied for 50,000 digital ‘red packets.’ Each red packet contained 200 yuan equivalent to USD 30.
The airdropped digital yuan worth $1.3 million was spent in 62,788 transactions at 3,389 designated shops. A female user who was among the selected 47,553 consumers took to social media to share her experience and wrote,
“I received a text message every day urging me to spend the red packet before the trial deadline, so I spent the entire 200 yuan in a department store last Friday,”
Users Find the Use of Digital Yuan Quite Easy
Many users who received the airdropped red packets said that spending the national digital currency is quite easy and not much different than WeChat Pay and Alipay.
A state-backed newspaper also reported that around 110 petrol stations would also begin processing payments in digital currency later this month. The newspaper also noted that the processing of the payment for digital yuan is quite similar to the existing payment modes. The only difference between the current payment modes and the national digital yuan is that it won’t charge any additional processing fee.
Before the Shenzhen trial, a total of 3.13 million transactions have been made in the digital yuan, revealed Fan Yifei, a deputy governor at the People’s Bank of China.