China made an innovative plan to increase the use of CBDC

China’s government has taken a tough stance on cryptocurrencies, but it has big plans to increase the use of its central bank digital currency (CBDC). About $4.5 million in e-CNY will be airdropped for residents of Shenzhen City, China.

After banning all crypto-related activities in September last year, China started a trial of the digital yuan or e-CNY earlier this year. In the last few months, some measures have been taken to increase its use. The Municipal Bureau of Commerce of Shenzhen will distribute this digital currency by lottery in partnership with several banks. One issued by the Government of Shenzhen Press release “The Dragon Boat Festival is about to begin and consumption increases significantly during this time. 30 million yuan will be distributed to the residents of Shenzhen,” it is reported.

People in Shenzhen will be able to use e-CNY to pay for food, clothing and transportation expenses. The Central Bank of China recently stated that it is not interested in a CBDC. trial Connecting 10 cities for People’s Bank of China (PBoC) aims to increase the competition in the market through this digital currency. This will improve the efficiency and security of the payment system and will help in reducing the cost of transactions. Zou Lan, head of financial markets at PBoC, said that PBoC’s digital yuan wallet is one of the fastest growing apps in terms of number of installs. He had told that about 20 percent of the population of China has installed this wallet.

Unlike cryptocurrencies, CBDCs do not have volatility and other risks. In the US, the Federal Reserve is exploring the possibility of launching a CBDC. Russia has started testing its CBDC called the Digital Ruble. Jam-Dex, the digital currency of the Caribbean country Jamaica, is launching soon. Its testing was completed last year. All Jamaicans will have access to Jam-Dex through a wallet provider or bank. About 17 percent of Jamaica’s population does not have access to the banking system. All Jamaicans with a bank account will be able to receive the Jam-Dex digital wallet automatically.
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