China Giving Away Over $6 M as Onset of Digital Yuan Trials

China Giving Away Over $6 M as Onset of Digital Yuan Trials

Until Monday midnight, June 7, Beijing residents can join the lottery set by the government of China in giving away over $6 million as an onset of its digital yuan trials.

This was after the Beijing Local Financial Supervision and Administration Bureau announced that the lottery was meant for its inhabitants.

This is by signing up through the mobile applications of the People’s Bank of China (PBOC) and Industrial and Commercial Bank of China.

The chosen winners can spend their digital money prizes until June 20.

Starting this June, a total of 200,000 digital red envelopes with 200 digital yuan ($31) each will be distributed as prizes for the test lottery test program.

The government of China already did a lot of e-yuan giveaways. It is a part of the digital yuan trial and in expanding the pioneer program in the future.

According to a statement released by PBOC last 2020, it has been planning to use its digital currency for the 2022 Winter Olympics.

It also stated that the new currency will have the same features as cryptocurrencies.

This Chinese e-money doesn’t have an official name yet. However, it is usually called DCEP which stands for Digital Currency Electronic Payment.

The e-yuan is expected to oust cash in circulation in line with China aiming to be the first top-tier economy to test a digital currency on a national level.

Other major countries announced that each of their central banks is already developing digital currency which includes the UK and India.

The Bank of Japan recently announced the start of its one-year digital yen trial.

This would be testing the technical feasibility of the core functions and features that are required for the Central Bank Digital Currency.

USD Increased

In early trade on Monday in Europe, the USD increased as the softer than expected payrolls were released.

Due to this, traders are turning their attention to this week’s inflation figures.

Starting with the USD/CNY which progressed 0.1% to 6.4006 following the release of China’s May trade data.

This reflects that the Chinese imports are growing at the fastest pace in a decade.

It was boosted by the fresh spike in the prices of commodities, however, export growth was lower than the projected figures in the same months.

On the other hand, the EUR/USD pair subsided 0.1% at 1.2163. Nonetheless, it is still over its three-week low of 1.2104 last Friday.

Meanwhile, USD/JPY climbed at 109.50. In contrast, GBP/USD crashed 0.1% to 1.4140 as well as AUD/USD who also sank at 0.7734.

Lastly, the US dollar index which trails the greenback against its rival currencies jumped less than 0.1% at 90.180.

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