China will invest $6.2 million in a new digital yuan experiment in Beijing.

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Residents of Beijing can apply to participate in the lottery until midnight on June 7.

The Chinese government is conducting another digital yuan lottery, this time in Beijing, to fuel its continuing digital currency experiment.

The Beijing Local Financial Supervision and Administration officially announced Tuesday that the government will distribute 40 million digital yuan ($6.2 million) to Beijing residents as part of a new digital currency pilot.

Starting in June, the program features “red envelopes” — a traditional way of gifting money — with each providing a free online wallet containing 200 digital yuan ($31). These red envelopes will be handed to 200,000 lottery winners, who will need to download an app to use their winnings at almost 2,000 city-designated retailers. Consumers can register using two banking apps: China’s Mobile Banking App and ICBC Mobile Banking App.

According to the release, Beijing residents should apply to participate in the lottery by June 7 at midnight, and winners will be able to spend their winnings by June 20. Users will be able to top up their wallets if they wish to spend more money, according to the release.

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The government has distributed digital yuan in several places, including Shenzhen. These lotteries are intended to assist the People’s Bank of China in testing the country’s digital currency following the central bank’s announcement of the first digital yuan trials in April 2020.

As of late March, China has allegedly handed out up to 150 million digital yuan ($23.5 million) in order to promote digital currency use as part of the experiments.

As previously reported, China’s central bank is considering allowing international athletes and tourists to use the digital yuan at the 2022 Beijing Winter Olympics.

 

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