China’s digital yuan testing has extended to the capital, Beijing, after months of testing in other major cities. According to local news outlets, the pilot test of the central bank digital currency (CBDC) will focus on small local enterprises initially.
The CBDC, alternatively known as the digital currency electronic payment (DC/EP), has been in testing phase in Shenzhen, Suzhou, Xiong’an New Area and Chengdu. As CoinGeek reported in November, the People’s Bank of China was targeting Beijing for its next pilot test—set to be the biggest one yet.
The trial started on December 29, with the focus initially being on small retail payments. Unlike in the other cities where the PBoC has sought to partner with large companies, the Beijing trial started off with small local companies.
As the Beijing trial starts, the city of Shenzhen is set to conduct its second digital yuan lottery. In its first lottery, the tech city awarded 200 digital yuan to around 50,000 residents. They could use the DC/EP to make payments in over 3,300 stores within the city.
In the second trial, the city is set to double the giveaway to $3 million. In a notice announcing the lottery, the city’s government announced that it’s giving away 100,000 red packets worth $30 each to its residents.
Lottery winners will be able to spend the funds on January 7 – 17. In this trial, residents will be able to spend the digital yuan in over 10,000 stores, over three times the number in the first trial.
