China is publicly testing cryptocurrencies, distributing $ 30 free to every citizen

The Central Bank of China will issue 10 million yuan (US $ 2 million) in electronic fees to the randomly selected 50,000 residents.

These are the first to participate in China’s public trial of an electronic renminbi payment system, which has the same value as regular banknotes and is recognized by China’s central bank. But only exists as code in digital wallets.

The People’s Bank of China (PBOC) pilot program takes place as central banks around the world are racing to issue cryptocurrencies to modernize their payment systems while fighting competition. potential from privately issued cryptocurrencies.

The electronic yuan has the same value as ordinary paper money and is recognized by the central bank of China

Starting October 9, anyone in Shenzhen can apply for the program through the country’s four major banks. However, only a limited number of participants received 200 yuan (about USD 30) free of charge through random dialing.

The program will last until October 12. Winners can then use the cryptocurrency at 3,389 retail locations in Shenzhen, including Sinopec gas stations, Walmart stores, CR Vanguard mall and Shangri-La hotel.

Earlier, in April, the People’s Bank of China said it was conducting a test of an electronic yuan payment system in four cities across China, including Shenzhen. It is expected that this system will also be piloted at future Winter Olympics venues.

Interface of electronic wallet application of electronic yuan

Kenji Okamura, Japan’s Deputy Minister of Finance, said China is looking to gain a leading edge in its efforts to develop cryptocurrencies. On Friday, a group of seven major central banks including the US Federal Reserve held a discussion on cryptocurrencies, in an attempt to catch up with China’s “proactive short cuts”. or private crypto projects like Facebook’s Libra.

China’s crypto ambitions are not just limited to the domestic market. An editorial published by the PBOC last month said China needs to be the first country to issue cryptocurrencies to promote renminbi internationalization and reduce dependence on the payment system. USD globally.

However, Flex Yang, founder and CEO of crypto-finance firm Babel Finance, said technology is not the deciding factor in whether the yuan is accepted. global or not.

“It depends on whether other countries are willing to accept e-yuan payment systems. It’s a political issue, not a technology one. We expect it to be. future development as it is still in the early stages. ”

Refer to ABC.net.au