Residents of Shenzhen are now free to participate in a lucky draw where winners will receive $7,500 of digital yuan airdrops as part of an ongoing campaign dubbed “2020 Rewards for Luohu.”
Digital Yuan Campaign in Shenzhen
The draw began on Oct 9.
Any of the city’s 12 million official residents are free to apply for a chance to trial the official Digital Currency Electronic Payment (DCEP) wallet should they emerge winners.
Lucky winners will be announced on Oct 12 and will share the 10 million the District of Luohu plans to distribute.
There will be four types of DCEP wallets. Applying for the airdrop via the iShenzhen app is an expressway of receiving what is likely to be the first CBDC to be rolled out in scale.
Registration requires citizens to fill out their full names, phone number, and their identity card number. Presently, only four state-backed commercial banks–China Construction Bank, People’s Bank, Industrial and Commercial Bank, and Agricultural Bank, will be supported in the program.
Airdrops will be in batches of 50,000 RMB known as red packets. Lucky winners will receive an SMS guiding them on how to receive the official DCEP wallet known as the Digital RMB App.
The app is the official portal where they can spend their airdrop in any of the 3,400 merchants scattered across the city between Oct 12 and 18.
The Pilot Program in China’s Tech Hub
In Dec 2019, the PBoC said it would pilot the digital yuan in Shenzhen and Suzhou testing its viability in the expansive country’s core sectors like transportation, healthcare, and education.
Shenzhen was chosen because of the zone’s high density of tech companies. The success of the DCEP project would highlight its prowess but also goes a long way in helping shape China’s financial strategy.
The pilot follows months of testing at the central bank’s internal system in collaboration with five financial institutions including the Industrial and Commercial Bank of China (ICBC) and the Bank of China (BOC).
It is unclear which model from which of the PBoC partner bank was successful following the Horseracing model implemented late last year.
The central bank made it clear that partner banks in Shenzhen would be free to “design the scenario” and the “model that runs fast and well might directly be adopted by the central bank” even though it had completed top-level designs and standard settings.
Earlier, as reported, the Chinese government will likely rollout traceable hot and cold DCEP wallets for its citizens. Use depends on the submission of personal details.