China undertook a promotion campaign for the official digital Yuan (e-CNY) by distributing it free in several Chinese cities. The campaign was launched coinciding with the holiday season for the Spring Festival. The total dole amounted to $26.5 million, media reports said.
As part of the campaign, local government bodies offered free e-CNY as subsidies to local businesses. The country’s private sector businesses in transportation, consumer tech, communications, and tourism participated in the campaign. The government is trying to promote e-CNY as a more convenient payment method, which offers options and financial mobility for its users.
China began official trials of e-CNY in late 2021. In two years, its transactions have gone past 100 billion yuan, which is equivalent to $14 billion). Many Chinese people have adopted the digital currency for its ease of use, the media coverage said.
In China’s neighborhood, India has started a trial of its CBDC (e-rupee) in the wholesale and retail sectors. The country plans to introduce digital currency in a graded manner.
The world’s second-largest economy, China, has put a complete ban on decentralized finance and crypto trading within its jurisdiction. Unlike China, India has not officially banned cryptocurrencies, it has imposed restrictive taxation on crypto transactions that make trading in digital assets unprofitable. However, like China, India is also enthusiastic about its CBDC plans.
