The initiative by the Changzhou authorities is part of the People’s Bank of China’s (PBOC) digital currency mass adoption program by the Chinese authorities. The distribution of e-CNYs within a particular city of a particular province is done for the sake of use during the upcoming local shopping festival. In Changzhou, digital yuan handouts began as early as June, and now authorities are preparing to launch a second wave of so-called “red envelopes”.
The upcoming round of giveaways will include coupons with a 30 yuan ($4.3) discount on purchases up to 100 yuan ($14), or a 50 yuan ($7) discount on purchases worth 200 yuan ($28). To participate in the draw locals need to apply on the My Changzhou mobile app and set up a wallet for e-CNY.
The digital yuan giveaway will run from July 16 to 20. Coins and discount coupons will be available to 10,000 Chinese citizens. People will be able to spend them at the large Changzhou New Century shopping center, several theme parks, supermarkets and department stores that accept payments in the state-issued stablecoin.
Last week, the Chinese government-owned commercial Bank of China launched test offline payments in digital yuan linked to a user’s SIM card. In early July, residents of Jinan city now have the option to pay for bus fares with digital yuan using their cell phones.