For over seven years now, China has been exerting massive efforts in developing its Central Bank Digital Currency (CBDC), the digital yuan, which is now on a critical test phase and is ready to be utilized by the Chinese people.
According to CNBC, around $6.2 million worth of digital currency will be given by the Chinese government to some lucky residents in its capital, Beijing. Recipients will be selected via a lottery, in the interest of fairness and quality.
In order to participate, residents must first download two of the banking apps that will allow them to register and enter the selection process.
The deadline for the registration will be on June 7 and the lucky selected residents will receive one of the 200,000 red packets, each one containing 200 yuan or $31 that can be used in certain stores.
A possible launch on the Ethereum network
China Securities Regulatory Commission member Yao Qian has suggested leveraging the Ethereum network or Diem’s network in launching the digital yuan, presenting the idea at the International Financial Forum (IFF) 2021 in Beijing.
The currency, known as Digital Renminbi, appears to be at a more advanced phase as compared to its counterparts or similar concepts from different parts of the globe.
As part of a joint development between Alibaba’s Ant Group and PBOC, the largest payments service provider in the country signed a cooperation with the financial institution to submit their database.
Comments on the possible launch
Dovey Wan, a Primitive Crypto partner, shared his thoughts about the possibility of the digital currency launching on the network for the cryptocurrency ethereum.
He said there is a zero chance for China’s virtual currency to launch on top of the Ethereum network as he cited that it has a technical framework published long ago, stating it will run on PBOC’s private cloud.
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