Crypto-Lottery: China's Solution for Re-Stimulating the Covid Era EconomyPublished October 29, 2020 by Lee R
China is utilizing the benefits of cryptocurrency to open the iGaming window in the world's most fluid economy.
China is engendering a cryptocurrency for a new lottery designed to re-stimulate the economy.
In what are being called “trials” for a new digital currency, Chinese authorities in Shenzhen city have already begun giving away over 10m yuan ($1.49m) in a citizens’ lottery—which would expand the use and transaction of digital currency in China significantly.
Over 2 million applicants applied last Sunday to be one of 50,000 randomly selected citizens to receive “red packets” worth 200 yuan (about US $30).
To receive the currency, participants are required to download the not yet publicly available Renminbi app.
The winners would be able to spend their winnings at 3,800 designated outlets in Luohu district.
As an Economic Measure
Shenzhen's official internet information office calls this digital currency “trial” a potential coronavirus economic recovery measure which stimulates consumer spending.
The type of spending that digital currency affords seems to be the advantage that this new lottery provides directly or indirectly to all stakeholders in the massive Chinese economy.
Since April, several Chinese cities including Shenzhen have reportedly entered the “trial” through adopting digital currencies into the local monetary system with paying public servant salaries as one initial use.
China's state-run People's Bank of China is currently backing the currency, as part of the government initiative to create a cashless society, with digital currencies ideally cheaper and easier to monitor than paper money.
Private Sector Participation
By offering apps which process and/or accepting digital currency payments, large firms such as TenCent and AliPay are already normalizing the use of digital currencies in China.
Bank Governor Speaks
At a recent financial services conference, People's Bank of China deputy governor Fan Yifei offered two examples of streamlined transaction benefits available from digital currency: barcode scanners and facial recognition.
Fan further elaborated that pilot digital currency projects had to this point processed 1.313m transactions worth more than 1.1bn yuan ($162m)--transactions which will now include distribution of red packets for iGaming sector lottery games.
This total has a chance to grow sizeably with every new lottery in China, which indicates the potential for a major expansion in innovative iGaming technology in China through the lottery sector.