City in China hands out $8.2 million free digital currency test

Oktober 2020   |   by Jonathan

Valid for only five days, money distributed should be spent in accredited establishments

City in China hands out $8.2 million free digital currency testNOTÍCIAS

A Chinese city intends to distribute Bitcoin Method about R$ 8.2 million for free to 50,000 people. According to the project, the aim of the money distribution will be to test the use of a digital currency, which is being developed by China.

This way, each participant of the project will receive more than R$ 165 free of charge that will be distributed in a completely random way. In addition, participants can only spend the money received in a few specific establishments.

The Central Bank officially announces that PIX will be free for individuals
On the other hand, the project that distributes money for free also presents a short period for the digital coins to be spent. In total, participants have only six days to spend the equivalent of 200 yuan, the official currency of China.

China distributes money for free
China is developing a digital currency project that aims to replace the use of physical money in the country. As a result, citizens may soon retire the notes, which would be replaced by digital money.

Already in the testing phase, digital yuan will be used in a social experiment in the Chinese city of Shenzhen. According to the Chinese city administration, more than R$8.2 million will be distributed to 50,000 people, or 200 million yuan.

The digital money will be distributed free of charge, through a random order among those enrolled in the Chinese city’s project. According to Sina Finance, the money distributed in Shenzhen is part of a project between the city and the Chinese Central Bank.

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The project to distribute China’s digital currency received registrations from participants for three days, with registrations closing last Sunday (11), as reported by Sputnik News.

The money that will be received by the participants has „validity“, and must be spent by next Friday (18). In total, there are 3,389 establishments which are able to receive the digital currency distributed among the population of Shenzhen.

Digital currency
China is developing tests with a digital currency that were started in 2014 in search of creating an alternative to paper currency, still widely used as money by the country.

In addition to the project in the city of Shenzhen, China is already testing the digital yuan that is being developed by the country. Even before it was officially launched, China’s digital currency has already been tested in other financial operations.

In total, more than 3 million transactions have been completed involving China’s digital currency. Meanwhile, this number of transactions with digital yuan equals more than R$ 900 million.