Digital Fiat 1 | 22 October 2020
While other central banks are talking about central bank digital currencies (CBDC), the People’s Bank of China (PBoC) is already trialling a Digital Renminbi (known as a Digital Currency Electronic Payment (DCEP)).
The DCEP is not a crypto-currency but is a digital version of China’s official currency the yuan which is issued and backed by the Chinese central bank.
Earlier this month the PBoC held a lottery to distribute 10 million yuan worth of its new digital currency to 50,000 people in Shenzhen.
It is reported that nearly two million people entered the lottery and 50,000 each received 200 digital yuan (£23).
The winners of the Digital Renminbi accessed their money by downloading a Digital Renminbi app and opening a electronic wallet.
Winners of the lottery needed to be quick as the digital money had to be spent across 3,000 locations between the 12th and 18th of October.
The lottery is the latest trial for China’s Digital Currency Electronic Payment (DCEP) ahead of a planned launch later this year.
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This is the first edition of Digital Fiat, exploring Central Bank Digital Currencies in manageable chunks.