Chinese cities launch digital yuan activities to promote consumption during Spring Festival
Published: Feb 06, 2023 12:31 AM
The mascot of digital yuan Photo: VCG

The mascot of digital yuan Photo: VCG

Chinese cities launched digital yuan activities worth over 180 million yuan ($26.6 million) to promote consumption during the Spring Festival holidays, including subsidies, consumption coupons and other programs, according to media reports on Sunday.

Digital yuan or e-CNY, a component of China's currency, has been developing rapidly in recent years. During the first Spring Festival holidays after China optimized its COVID-19 prevention measures, many local governments handed out coupons in the form of digital yuan to boost consumption.

For instance, Jinan in East China's Shandong Province and Lianyungang in East China's Jiangsu Province issued digital yuan coupons during the holidays.

Some local governments also used digital yuan to subsidize businesses to boost recovery, such as Shenzhen in South China's Guangdong Province, which handed out 100 million yuan to subsidize the catering industry in form of digital yuan. 

Nearly 200 digital yuan activities were launched during the Spring Festival across China, and the activities were worth more than 180 million yuan, domestic news site reported.

Commercial institutions also participated in consumption promotions with digital yuan. Their activities were more diversified, covering mobile communications, supermarkets, transportation, tourism and other sectors. 

Chinese consumers have shown rising enthusiasm for the digital currency. Data from Meituan, a China-based e-commerce platform providing life services, showed that digital yuan given out by the Hangzhou government in East China's Zhejiang Province via the platform ahead of the holidays was taken up within 9 seconds.