Beijing is distributing red packages, each containing 200 digital yuan, valued at about $31 million.
The scheme envisions the distribution of a total of 10 million digital yuan in the Chinese capital, which can be used by citizens for their physical and electronic transactions.
Distribution by lottery
Chinese crypto currency packages are dealt by lottery, and everyone, including retailers and entertainment companies, can sign up to be paid in digital yuan.
A similar distribution is expected to begin in the city of Suzhou, perhaps in even greater quantities.
Suzhou will be the second Chinese city to test domestic crypto currency. If successful, then about 1 billion yuan of digital yuan is expected to be distributed in the country.
The new test will now be available to holders of Chinese IDs or have residence permits in the cities of Hong Kong, Macao and Taiwan.
The crypto currency developed by Beijing will operate in a manner analogous to existing distance payment applications.
It will be controlled by the People’s Bank of China
The main difference between the crypto currency under development and Bitcoin is that it will be controlled by the People’s Bank of China.
The main goal of the Central Bank of China is to make a digital yuan, which will be used as a replacement for SWIFT.
SWIFT is the most widespread system of money transactions and payments, however in recent years it has been criticised for its inefficiency and the particularly high costs it charges for transactions within it.