Shenzhen’s Futian district will give away 15 million yuan ($2.29 million) in digital yuan (or RMB) to local residents this Friday, the latest move to boost consumption amid the new round of Omicron flare-ups while promoting the use of the digital currency.

According to local government, the 15 million yuan worth of digital currency will be separated into 130,000 red packets, and will be given away by raffle via WeChat payment. Local residents can join the raffle by registering from Monday with lots drawn on Thursday.

It’s worth noting that this is the first time that the issuance of digital yuan has included all eight pilot banks and a range of sectors including restaurants and supermarkets. Consumers can spend the red packets across nearly 5,000 stores in the district, with no minimum payment requirement. 

Amid the shock of the latest Omicron outbreak, Shenzhen has rolled out a package of measures including granting consumption coupons, cutting tax and government fees and rent to aid businesses and residents.

The issuance of digital RMB is not only a new measure to benefit local residents but promote the application of the digital currency in the pilot city.

Following the successful promotion of the digital yuan pilot program over recent years, the People’s Bank of China (PBC), the country’s central bank said in early April to extend the program to more domestic cities, including Guangzhou in South China's Guangdong Province, North China’s Tianjin and Southwest China’s Chongqing municipalities.

A number of application settings across wholesale and retail, catering, tourism and payment of administrative fees, cover both online and offline scenarios and can be replicated and promoted, according to the PBC.

Digital yuan transactions in China amounted to nearly 87.57 billion yuan by the end of 2021. 

Global Times