The Great e-CNY Giveaway
This Lunar New Year, the Chinese government decided to unleash a financial firework display by handing out millions of dollars in its central bank digital currency, the e-CNY. With over 200 promotional activities sprouting up nationwide, it’s clear they meant business. The government aims to kickstart consumption, especially after easing COVID-19 restrictions that had many wallets feeling a little too light.
The Numbers Don’t Lie
According to reports, a whopping 180 million yuan (that’s about $26.5 million for those who prefer greenbacks) was distributed across various subsidies and consumption coupons this season. Shenzhen was particularly generous, treating its local catering industry to over 100 million yuan ($14.7 million) in e-CNY. You can imagine the celebration: dumpling parties and hotpot feasts galore!
Vouchers and Lightning-Fast Adoption
In Hangzhou, the e-CNY love was further solidified when each resident snatched an 80 yuan ($12) digital voucher worth a total of around 4 million yuan (approximately $590,000). And if you think that stood stale on the shelves, think again! The vouchers were reportedly claimed within nine seconds. Talk about speedy shopping!
Strategies for Success
To keep the momentum going, local governments are rolling out additional strategies. For instance, Suzhou officials have set a lofty target of 2 trillion yuan ($300 billion) in e-CNY transactions by the end of 2023. Mark your calendars as it sounds ambitious given that they just crossed over 100 billion yuan ($14 billion) since the e-CNY’s launch.
Red Packets & Contactless Payments
What could be fancier than giving money and making payments at the same time? The e-CNY wallet app has rolled out a feature that allows users to send “red packets” or hongbao, which are traditional gift money during festivities. But wait, there’s more! Updates in early January mean users can now make contactless payments with their Android devices—even if they’re in the middle of an internet black hole or their battery has decided to take a nap.
Promises vs Performance
Despite this festive cheer, not all is rosy in the world of digital yens. A former central bank official recently pointed out that the initiatives’ results weren’t exactly stellar, describing usage rates as “not ideal” and “highly inactive.” This begs the question: can a digital currency truly thrive if people aren’t keen on using it? Maybe they need a few more New Year giveaways or perhaps just some really catchy jingles to make digital money feel like digital fun!
