Chinese consumers spend 8.8M yuan while trialing CBDC

Consumers in China spent 8.8 million yuan during a week-long trial of China's digital yuan. It is the greatest CBDC trial ever conducted.

By · Oct 28, 2020 . 5min read

Chinese consumers  trialing CBDC news

Chinese customers have spent 8.8 million yuan (US$1.3 million) in the first test week to trial the Digital Yuan at Shenzhen. More than 62,000 transactions took place during the week-long trial in Shenzhen. According to the reports, this is one of the most significant CBDC trials to be ever conducted in China.

47,573 residents selected for the Digital Yuan CBDC trial of 10M

According to the reports, Shenzhen’s government had approved about 47,573 people. They were chosen from the 50,000 decided by lottery to receive the digital red packets. Each of the digital packets included about 200 yuan (US$30). Moreover, a total of 1.9 million Chinese residents petitioned to partake in the 10 million digital yuan (US$1.49 million) giveaway.

Last week, about 62,788 transactions took place at the 3,389 designated shops in Shenzhen’s Luohu district. Digital Renminbi app received a transfer of a supplementary 901,000 worth yuan of additional credit. However, it is not yet formally accessible to the citizens. Meantime, users will be capable of using the extra supplies at the selected shops even before the trial is terminated.

110 Gas Stations will process payment via Digital Yuan?

According to reports, more than 110 gas stations in Shenzhen city will soon be capable of processing payments with the digital yuan from the end of October 2020. The national digital currency is contributing to an already very congested payments market in China. Furthermore, the smartphone apps WeChat Pay and Alipay are already controlling the electronic payments sector. 

Moreover, the current Shenzhen digital yuan trial takes the total amount spent on the digital currency to over $1 billion. The country’s central bank is contemplating for trailing the digital currency at a large scale before finalizing its official launch.

Where central banks around the world are showing interest in conducting CBDC pilot programs, the Bahamas has launched the Sand Dollar. This makes the Bahamas the first country to officially release a central bank digital currency (CBDC) past the testing phase. Moreover, the digital currency Sand Dollar intends to develop more financial inclusions among many Bahamas’ remote islands. 

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