(Yicai Global) Dec. 29 -- Suzhou has wrapped up a 16-day trial of China’s sovereign digital yuan, becoming only the second city in the country to experiment with the e-money after Shenzhen, and witnessing a fairly balanced split between online and offline spending.

CNY20 million (USD3.1 million) of virtual yuan was circulated in the city in southeastern Jiangsu province from Dec. 12 to Dec. 27 in the form of digital red envelopes, or ‘hongbao,’ traditionally used when making a gift of money, according to the Suzhou government.

Over 10,000 brick-and-mortar shops participated and online purchases could be made through e-marketplace JD.com using the Digital Yuan app.

Some 44.7 percent of the e-money was used for online shopping and 55.3 percent was used in bricks-and-mortar outlets such as shopping malls, supermarkets and restaurants.

China is leading the world in the development of a sovereign digital currency. The digital currency/electronic payment project is a virtual form of physical notes. The cryptocurrency uses up-to-date offline technology and can still function even when users cannot get cellphone reception or access to the internet.

Beijing is next, the Beijing Daily reported.

Editor: Kim Taylor