Despite the criticisms we hear about China (mostly from the USA), there is no denying that in some respects they have moved far away from most of the more advanced countries in the world. A few days ago, a crypto lottery ended in which 10 million yuan (
CBDC) was distributed, which is approximately the value of $1.5 million. 2 million people applied, and 50 000 were given the opportunity to get CBDC that they will be able to spend on 3000 merchants located in Shenzhen province.
It should be emphasized that this is only one of the steps preceded by several tests, but that this is the largest test so far and perhaps even the one after which the digital yuan will begin to be used across the country.
They have a population of 1.4 billion people, and careful preparation before launching a digital currency is essential. Shenzhen is a high special economic zone, it is compared to Silicon Valley of America so it is the best place to test this coin.
The free distribution of digital currency to the public is also a way to advertise its technological value.
What exactly will the CBDC mean for China, how much and how will it affect their economy, will it be accepted by some other countries close to China, and whether it will weaken interest in Bitcoin, which has been banned from trading for years.
The CBDC was created to prevent the influence of other currencies on the yuan. CBDC is backed by RMB so it has real value. CBDC helps users to transfer money more quickly and continuously, minimizing complicated confirmation from the old banking system. People can transfer money anytime, anywhere without any congestion.
China's foresight competes with the dollar globally by paying with its digital currency.