China, the emerging powerhouse, has made its digital yuan a top priority. The country is actively conducting pilot programs to promote digital currency (CBDC). Some analysts believe that CBDCs have become an augmentation of existing worldwide competitions, with some observing digital currencies at the focal point of the money battle to supplant the dominance of the dollar.
On October 9, Sina Finance, a local news agency, reported that Shenzhen, a major Chinese city, is looking to distribute digital yuan worth almost $1.5 million. Through a lottery, 50,000 residents will be able to receive the pilot giveaway.
Chinese residents living in Shenzhen’s Luohu District will receive gift pouches worth 200 yuan or ($30 USD). Residents are allowed to spend at any of 3,389 merchants in Luohu District, starting from October 12 till October 18. However, the local news disclosed that the gift money could not be converted to someone or transferred to a personal bank account, as per the rules of use.
The United State is Losing Technological Cold War
Some analysts believe that China’s active involvement in blockchain technology and the crypto sector could be a threat to the US financial system, as the United States financial infrastructure is fully dependent on the dollar’s status.
On August 21, Ripple co-founder Chris Larsen passed a statement that China is pushing up the development of digital currencies to a great extent; its digital currency leadership is a “once-in-a-century opportunity” to overtake the dollar as an international currency.
Ripple CEO Brad Garlinghouse also emphasized that the US is already standing behind in the progress of cryptos compared to China. Brad further revealed that financial investors are looking to join the crypto community if the US regulatory creates a welcoming framework.