In a recent report gathered by reporters, Chinese e-commerce firm JD.Com confirms that it has become the first online platform to accept the nation’s central bank digital currency (CBDC), the Digital Yuan. A second mass giveaway of the token by the CBDC is expected in the South Eastern City of China, Suzhou City, later in the year.
The firm has confirmed that it’s digital division will accept the Digital Yuan in its affiliated online shopping centers. This is not the first time a lottery of this nature has occurred in China as CBDC continues to test the digital currency across the Asian country. A giveaway of this nature occurred in October in Shenzhen, in which residents were opportune to win 200 Digital Yuan and use them to shop and trade.
The digital Yuan to be used in the Suzhou lottery
The Suzhou Lottery kicks off on December 12 in a shopping festival known as “Double 12”. In a report gathered, the lottery is supposed to award at least 10,000 winners who will spend the tokens at stores whose payment systems have been aligned with point-of-sales technology to handle the CBDC like JD.COM. The city is expected to distribute about 10,000 red envelopes containing the digital currency to winners in the lottery to expend the currency.
The trials will commence using Near Field Communication(NFC), a technology that allows users to communicate in close proximity. The NFC innovation requires no internet in transactions, i.e., buying, selling, and transfers with this digital currency.
Retailers and merchants in Suzhou city are expected to have installed on their systems; NFC QR codes will make the transactions seamless. If all things are in place, and the trials are successful, this will mark a major landslide victory for the CBDC.
Digital yuan receives wide acceptance from all and sundry
Digital Yuan is one of the most advanced initiatives of the CBDC. It is an initiative designed to replace cash in circulation, such as coins and banknotes. Users will have to download digital wallets to store the funds and generate QR codes that can be scanned when transacting with it.
The digital Yuan will not be like cryptocurrencies as a commercial bank, and central will keep databases of its user’s flow of the currency. So far, it has been tested in cities like Shenzen and Chengdu. According to reports after the Shenzen trials, the residents likened the digital yuan platform to see no need for it already.
According to the Chinese government, the digital Yuan will give the Chinese policymakers a framework view of how money flows in and out of the country and help the system curb the illicit flow of funds for terrorist financing or money laundering.
The company, founded by Liu Qiangdong on June 18, also known as Jingdong and formerly called 360buy, is a Chinese e-commerce company headquartered in Beijing. It is one of the two massive B2C online retailers in China by transaction volume and revenue, a member of the Fortune Global 500, and a major competitor to Alibaba-run Tmall.