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Widespread roll out of Chinese digital currency is one step closer

Editor’s note: Matteo Giovannini is a finance professional at ICBC in Beijing and a member of the China Task Force at the Italian Ministry of Economic Development. The article reflects the author’s opinions, and not necessarily the views of CGTN.
The technological disruption that the financial sector is experiencing this year as a consequence of the outbreak of coronavirus goes beyond the limit of imagination, revolutionizing an industry that has remained unchanged for decades and affecting the way people interact with financial services from payments and transactions to lending.
One of the most fascinating aspects of innovation is represented by the decisions surrounding the introduction of countries’ sovereign digital currencies, that are expected in a not too distant future to replace paper money, the main medium of exchange among different civilizations for centuries, with pixels on the screen of a smartphone changing forever the whole global finance industry.
Sina Finance has reported that the southeastern Chinese city of Shenzhen, in collaboration with the People’s Bank of China (PBOC), is now planning to launch a pilot program for the promotion of the digital Chinese yuan through a public giveaway distributing 50,000 digital red packets of the value of 200 yuan each through a lottery worth 10 million yuan ($1.5 million).
The prizewinners will be able to use the money in over 3,000 designated shops for a period of seven days, in a shopping spree that is going to promote growing demand for the digital yuan while speeding up the transition to a more cashless society by the end of this year.
The announcement comes a few days after another move aimed at targeting consumers, with PBOC’s decision to carry out trials for the country’s digital yuan through Japanese vending machines that represent an ideal platform for conducting tests characterized by a frequent use of small payments. Read from source….