China’s Digital Yuan Trial in Full Force, DCEP Lottery Winners Using Digital RMB at 3,300 Stores

While other countries are still busy studying the opportunities and risks associated with central bank digital currencies (CBDC), like the US, China’s digital yuan trial is in full force.

People have already received the DCEP and started using it at convenience stores. Shenzhen metro ticket machine also has features to top-up metro cards with the digital yuan along with “DCEP accepted here” signs.

According to BlockBeat, nearly 2 million people in Shenzhen applied for the “Luohu Digital RMB Red Packet” lottery on the blockchain-based public services app operated by the Shenzhen government.

However, the lottery’s winning rate has been only 2.61%, as only 50,000 received 200 RMB ($30) from the government through the lottery, which brings the total DC/EP giveaway to RMB 10 million ($1.47 million).

The red envelope is basically the “digital renminbi,” which is under development. The wallet, meanwhile, has been already launched by China Construction bank at the end of August.

The idea here is to promote the demand for the new digital yuan as Dan Wang, the chief economist at Hang Seng Bank, told the South China Morning Post, the program is predicted to generate 50 million yuan in total demand.

These DC/EP will be spendable at 3,389 designated shops in Luohu this week, from 12th to 18th October 2020.

“China is doing blockchain airdrops using central bank digital currency. Technology moves forward. Don’t get left behind,” tweeted Binance CEO Changpeng Zhao.

According to him, although “Nothing beats bitcoin in terms of decentralization,” despite the being “fairly restrictive/centralized,” these CBDCs will “get the masses exposed to and comfortable with blockchain technologies.”

However, these centralized digital versions of fiat cryptos only give governments more power and control over their citizens.

While for cashless societies, the latest change of payment channel is just another way to move money around, what they miss is targeted stimulus policy, and helicopter money will be at a “much more granular level” in the future, said Dovey Wan of Primitive Crypto.

This further means easy seizure of personal wealth, all with just a few lines of codes.

“When retail has been so spoiled by the convenience of digitalization of fiat, and now into digital fiat, they can easily trade self-sovereignty and enslaved by the ultimate efficiency those central servers offer It’s more critical than ever for everyone to really own their keys,” she added.

Amidst this, the Ministry of Public Security of China has announced a nationwide “Card Breaking Campaign,” that could affect Chinese crypto OTC because while criminals in China use crypto to launder money, merchants also borrow and buy bank cards.

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Author: AnTy

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