Shenzhen to Gift USD3 Million in E-Yuan to Migrant Workers Who Stay Behind in Third Round of Tests
Dou Shicong
DATE:  Jan 20 2021
/ SOURCE:  Yicai
Shenzhen to Gift USD3 Million in E-Yuan to Migrant Workers Who Stay Behind in Third Round of Tests Shenzhen to Gift USD3 Million in E-Yuan to Migrant Workers Who Stay Behind in Third Round of Tests

(Yicai Global) Jan. 20 -- Longhua district will be the third testing ground in the economic powerhouse of Shenzhen for China’s sovereign cryptocurrency and is offering CNY20 million (USD3 million) in e-money to migrant workers to encourage them not to return to their hometowns over the upcoming Chinese New Year break in a bid to stem a recent upsurge in novel coronavirus cases.

One hundred thousand virtual red packets, a traditional form of gifting cash, each containing 200 e-yuan (USD31), will be distributed on a lottery basis, the Shenzhen government said today. Businesses must register those migrant workers not travelling home for the holidays. The local government does not accept applications from individuals, it said.

Lottery winners can spend their e-prize money at over 3,500 merchants in Longhua district between Feb. 1 and Feb. 9, it added. They will need to download the digital yuan app and open an e-wallet in order to do so.

Shenzhen was the first city in China to pilot the digital yuan back in October last year. The first round of tests took place in Luohu district and CNY10 million was distributed. A second round took place in Futian district on Jan. 7 involving CNY20 million.

Other cities, including Shanghai, Suzhou and Beijing, have also started trials of the cryptocurrency. The country’s six state-owned banks and mobile payment giant Alipay are also taking part.

The Chinese New Year holiday, which runs from Feb. 11 to Feb. 17 this year, is an important time of family reunion in China. It is known as the biggest human migration on earth as hundreds of millions of migrant workers leave the cities to return home to celebrate with their families.

However, this year, the government is asking migrant workers to remain at their place of employment to reduce the spread of Covid-19. Local governments such as Zhejiang and Fujian provinces are offering cash rewards and spending vouchers to migrant workers who stay behind.

Editor: Kim Taylor

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Keywords:   Shenzhen,Chinese New Year,Digital Currency