China boosts digital yuan reach with its latest test in Shanghai, the country’s financial hub
China has increased its digital yuan reach with its latest test in Shanghai, the country’s financial hub.
Shanghai sent out 350,000 “red packets” over the weekend, each containing 55 digital yuan (about $9) and totaling about 20 million yuan ($3 million). This corresponds to the highest number of red packets issued by China in a digital yuan test. Previous tests contained less than 200,000 red envelopes.
The Shanghai test shows that China’s central bank wants to include more citizens in its testing of its digital currency.
The total amount of funds given by China in recent months has more than doubled. The total amount currently stands at $39 million in six cities. As of February, that amount was $17 million in three cities.
The six cities now include Shanghai, Beijing, Shenzhen, Suzhou, Chengdu and Changsha. Shanghai is included in the airdrop policy for the first time, although it has participated in digital yuan tests before .
China is ahead of other major economies to launch a central bank digital currency. China, which began researching and developing the digital yuan in 2014, has yet to announce an official launch date.