A staff member of the Bank of Communications Beijing Branch instructs a visitor to open a digital RMB wallet on a mobile phone, on June 16, 2021. (PHOTO / XINHUA)
The digital yuan (e-CNY) is playing a major role in a series of measures to stimulate consumption during the Spring Festival holiday in the city of Shenzhen in South China's Guangdong province.
At a flower fair on Aiguo Road in Luohu district, a crowd of people have been scanning QR codes for e-CNY red envelopes containing between 2 yuan and 168 yuan, before selecting flowers to decorate their homes with for the new year.
In Shenzhen, 100,000 digital yuan red envelopes valued at 20 million yuan ($2.95 million) have been given out via lucky draw for citywide consumption during the upcoming Spring Festival holiday
Liu Zhen, a seller at the fair, is very pleased with the sales volume this year and mentioned that the e-CNY has had a positive impact. “I sold about 20,000 yuan (worth of flowers) in one morning and 60 percent was paid using digital yuan.”
READ MORE: Digital yuan strikes balance on privacy
In Shenzhen, 100,000 digital yuan red envelopes valued at 20 million yuan ($2.95 million) have been given out via lucky draw for citywide consumption during the upcoming Spring Festival holiday.
Residents can spend the e-CNY in selected stores and on tickets to see shows and films, as well as on books. All Chinese citizens aged above 16 in Shenzhen were eligible to apply for the lucky draw. In addition, each district authority is also implementing various kinds of digital yuan-based consumption stimulation measures.
Since the first digital yuan trial program in 2020, such promotions have become an innovative means to further the development of the digital economy in the city. In 2022, more than 70 digital RMB-based consumption promotion events were held in total, involving capital investment of about 570 million yuan, according to the Shenzhen Central Subbranch of the People's Bank of China.
READ MORE: Red packets with digital yuan snapped up in HK
Various innovative applications have been released. For instance, the Shenzhen branch of the Agricultural Bank of China last week issued an e-CNY physical wallet — an integrated SIM card for e-CNY payment, internet connection, communication and digital entrance certification.
Xu Liyan, a young consumer in Shenzhen, said she has participated in the digital yuan lucky draws several times and once won 100 yuan. “I am already familiar with the e-CNY app and the whole payment process. It’s very convenient for payment both offline and online,” she said.
The Commerce Bureau of Shenzhen Municipality is also planning to arrange a total of 100 million yuan in the form of digital yuan red envelopes to be spent on family reunion dinners during the Spring Festival holiday.