The Chinese central bank, the People’s Bank of China (PBoC), claims its digital yuan giveaway programs are successfully driving the adoption of the central bank digital currency (CBDC).
According to state media outlet People’s Daily, the PBoC’s Digital Currency Research Institute says the vast majority of digital yuan coupons and tokens issued in giveaway events have been redeemed. In some pilot areas, redemption rates have reached 99%, while giveaways have increased digital yuan usage by over 15 times in parts of the pilot zones.
Millions of dollars worth of free digital yuan tokens, discount vouchers, and hardware wallets have been distributed by banks, tech companies, and city governments to encourage public adoption. However, international critics argue that the giveaways have had minimal impact, as digital yuan transactions still only make up less than 2% of China’s payments market.
However, the institute’s data seems to counter the notion of lackluster uptake. It says over 90% of giveaway coupons and coins have been redeemed since the e-CNY pilot began.
The PBoC has partnered with e-commerce giants like JD.com to offer discounts for customers paying in digital yuan. More recently, it has focused on the token’s potential for cross-border trade, tourism, and business use cases.
Researcher Dong Ximiao highlighted the benefits of using digital yuan smart contracts, which allow customization of fiscal subsidies and monitoring of funds. The PBoC has also targeted overseas visitors by adding English options to the e-CNY app and demonstrating usage for international students.
While still early, the central bank’s giveaways appear to be driving meaningful adoption of China’s ambitious digital currency. The PBoC seems intent on pushing the e-CNY into mainstream usage both domestically and internationally.
