China accelerates digital currency trials with massive 10 million Yuan giveaway
The debate about cash being dead rages on, but as far as China concerned digital cash is the future.
Key takeaways
- Covid-19 has done many things this year and getting more people to switch from cash, where the virus can linger for days, to digital payments has been one of them.
- Last week, the government in Shenzhen carried out a lottery to give away a total of 10 million yuan, about $1.5 million, worth of the digital currency.
- Nearly 2 million people applied and 50,000 people actually won.
Cite or link to this article
Griffin, M. (2020) 'China accelerates digital currency trials with massive 10 million Yuan giveaway', 311 Institute, 24 October. Available at: https://www.311institute.com/china-accelerates-trials-of-national-digital-currency-with-massive-10-million-yuan-giveaway/ (Accessed: 1 October 2026).
Covid-19 has done many things this year and getting more people to switch from cash, where the virus can linger for days, to digital payments has been one of them.
But even before the pandemic though cash in some countries, like Sweden, was on its last legs as more and more people made the switch, so a couple of years ago it didn’t come as any surprise that China’s People’s Bank of China (PBOC) was experimenting with creating a digital version of its own sovereign currency.
While the first trials got underway a while back this week the Chinese government announced they’ve started one of the biggest real-world trials for their new digital currency as the government continues to edge closer toward creating a cashless future.
Last week, the government in Shenzhen carried out a lottery to give away a total of 10 million yuan, about $1.5 million, worth of the digital currency. Nearly 2 million people applied and 50,000 people actually won.
The winners can now download a digital renminbi app to receive the digital yuan and spend it at over 3,000 merchants in a particular district of Shenzhen. The south China technology hub is home to some of the country’s biggest tech giants including Huawei and Tencent.
Local supermarkets and pharmacies are among the participating merchants as well as Walmart, according to a post by the Shenzhen government messaging app WeChat.
China has been pushing toward a cashless society.
The digital yuan is not a cryptocurrency like bitcoin. Instead, it is issued and controlled by the People’s Bank of China, the country’s central bank. It is not looking to replace digital wallets like Alipay or WeChat Pay. It will likely work together with them and other banks.
In comparison, Bitcoin is decentralized, which means it’s not owned and controlled by one entity, and it is not distributed by a central bank.
China’s digital yuan has been in the works for the past few years and there have been just a handful of small trials across the country, but the Shenzhen pilot appears to be the biggest so far.
Central banks around the world are exploring the idea of issuing digital currencies, and just last week the Bank for International Settlements and several other central banks published a framework for central bank digital currencies, or CBDCs which they all hope to roll out soon, but for now, as seems to be the way in many areas, China is pulling ahead of its want to be competitors.
What this means for your organisation
Real-world trials build momentum.
Giving people digital cash to spend in shops tests the system at scale. Public use builds habits quickly. Payment leaders should watch adoption rates closely.
State money joins private wallets.
The new currency is meant to work with existing payment apps, not replace them. Banks and platforms keep a role. Firms should plan how state digital money fits their services.
China is setting the pace.
Other central banks are still writing frameworks. Early movers can shape global standards. Multinationals should prepare for digital yuan use in trade.
Three questions for your next leadership meeting
- How would a state digital currency change our payment flows?
- Could we accept central bank digital money in our stores?
- How will China's lead affect payment standards we use?
The trends and technologies behind this story
From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.
Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.
FAQ
Why does this matter?
The debate about cash being dead rages on, but as far as China concerned digital cash is the future.
About the author
Matthew Griffin Founder, President and Futurist, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
Read full bio
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity programme, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
What future do you need to see?
Choose one to get started on connected society and the future of your organisation.
Sources and further reading
Source: first published by the 311 Institute on 24 October 2020. Cite as: Griffin, M. (2020). China accelerates digital currency trials with massive 10 million Yuan giveaway. 311 Institute. https://www.311institute.com/china-accelerates-trials-of-national-digital-currency-with-massive-10-million-yuan-giveaway/
You are welcome to quote this article with credit and a link to the original.