This airdrop will be directed at local residents in an attempt to revive the local economy that have been negatively impacted by the lockdown. Several banks are collaborating with the Shenzhen Municipal Bureau of Commerce to make the airdrop happen.
The airdrop will happen both online and offline. The total amount in these envelopes has been reported to be $4.5 million. The airdrop will come with instructions attached. According to these instructions, users must login to the Meituan app.
After logging in, users must sign up for the incentive, and only then will they be able to access the e-CNY rewards that are part of the lottery draw.
Here are some additional details about the airdrop
As previously stated, these envelopes are distributed via a lottery system. Once chosen through the lottery, the digital Yuan will be eligible to be spent at over 15,000 app merchant stores that accept e-CNY. Users or participants in this lottery have the opportunity to win 88, 100, or 128 digital yuan.
Bank of China, Agricultural Bank of China, Bank of Communications, ICBC, China Construction Bank, Postal Savings Bank of China, China Merchants Bank, and WeChat are all collaborating with the Shenzhen Municipal Department. These red envelopes programme will officially launch on May 30.
The People’s Bank of China previously stated that the digital Yuan could be used to boost local economies while also improving the efficiency of certain financial services.
Reportedly, many districts have been planning on releasing the same airdrops. Nansha District in Guangzhou, for example, intends to offer 10 million e-CNY to encourage consumer spending.
US Apps Might Not Support Digital Yuan
While China continues to move forwards with its e-CNY plans, there may be some setbacks along the way. Since Bitcoin is protected under Chinese law, the asset is now being used in many districts.
A United States bill is reportedly attempting to prohibit the use of the digital Yuan in app store purchases. This ban is directly related to national and economic security concerns.
The primary goal of US lawmakers is to protect the country from any negative consequences of the global adoption of China’s digital yuan.
Shenzhen is currently one of three cities in China where residents can pay municipal taxes and tax-related charges using the digital Yuan.
Bitcoin was trading above the $31,000 on the one day chart | Source: BTCUSD on TradingView
