China Invests $ 1.5 Million in Lunar New Year Digital Currency Testing

Due to the outbreak of new masks on February 7, 2020 in Beijing, China, people wearing face masks in a shopping area in the country walk to a gap store in a shopping area.

Jason lee | Reuters

BEIJING – China’s capital city will conduct a turnover of about $ 1.5 million in a limited test of the central bank’s digital currency, which the municipal government announced over the weekend.

This marks the third major test of the digital currency under development by the People’s Bank of China. The cities of Shenzhen and Suzu conducted similar experiments in the last few months.

In this test, Beijing said it would select 50,000 from a pool of applicants to receive 200 yuan, or about $ 30 each, in digital currency. Recipients can spend money at designated offline locations or parts of the e-commerce site during the Lunar New Year holiday.

The vouchers are valid from 10 February to 17 February. The digital currency test is only open to those with a Chinese ID number, or residence permits from Hong Kong, Macao or Taiwan.

The People’s Bank of China is developing a digital currency, which is expected to operate in a similar way to transactions through existing payment applications. Mobile payments, mainly through the Alibaba-affiliated Alipay app and Tencent’s WeChat Pay, have replaced cash over the past several years as the dominant form of consumer payments in China.

Unlike well-known digital currencies such as bitcoin, the one under development by China’s central bank is controlled by a single power rather than a decentralized system managed by users around the world.