Town of Shenzhen airdrops 30M in free digital yuan to stimulate consumer spending

Based on local news outlet Shanghai Securities News, the town of Shenzhen will airdrop $ 30 million digital Chinese yuan (e-CNY) to local residents so that they can revitalize consumer spending. 

The airdrop is really a joint effort between Shenzhen and Meituan Dianping, China’s leading food delivery application. According to instructions, users will have to first login towards the Meituan application, join the motivation, after which potentially get the e-CNY rewards included in a lottery draw.

If selected, the e-CNY will be distributed to users and could be spent at greater than 15,000 in-application merchant terminals that accept the condition-owned digital currency. Formerly, the People’s Bank of China had identified the e-CNY like a potential tool for evolving regional economies and increasing the efficiency of select financial services. Meanwhile, sources at Meituan state that the e-CNY plays an important role in boosting spending and revitalizing local companies. Shenzhen can also be presently 1 of 3 metropolitan areas in China where residents will pay municipal taxes and expenses using the e-CNY.

Related: Draft bill to ban China’s digital yuan from US application stores

Unlike a number of other countries, China has stringently followed a zero-COVID policy which has seen the repeated lockdown and closure of non-essential companies in main financial hubs for example Shanghai. Last Wednesday, Chinese Premier Li Keqiang held an urgent situation ending up in top Communist Party officials to go over the devastating economic impacts from the country’s COVID policy. Among economic shortfalls, 20 from 31 Chinese provinces have issued “consumer spending incentives,” like the recent e-CNY airdrop, from The month of january to April.

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