Shanghai Promotes Digital Yuan with $3 Million Lottery

China has a long history of handing out hongbao, little red and gold envelopes filled with money, as a way to celebrate auspicious times of the year or to wish someone a prosperous future.

This is why so many Asian-themed online slots prominently feature this token of wealth and good fortune on their reels, with Kalamba Games even naming their Hong Bao slot after it. In their video slot, the red envelopes trigger highly prized bonus spins.

The Chinese government is now building on this cultural ritual to promote the nationwide adoption of its new digital Yuan. Below is an example of the lottery registration form which hopeful residents would have received:

Shanghai Steps Up

The latest Chinese city to offer residents access to the central bank’s blockchain-based currency is Shanghai. Its residents were invited to enter a lottery that was run from 5-6 June with 350,000 lucky winners each set to receive a digital red envelope from the People's Bank of China.

In order to participate in this free digital cash lottery, one only had to be a resident of Shanghai of legal age. Once approved the winners would be emailed their digital hongbao and could then claim the princely sum of 55 digital Yuan, which holds the same value as the current fiat Yuan.

In total, the lottery is set to put an additional $300 million worth of the new cryptocurrency into circulation as winners can only use the tokens at participating stores.

 The Joy of Online Sharing

China has been open about its intentions when it comes to its digital currency, they are looking to establish its digital Yuan early as a safeguard against the destabilisation of fiat currencies and to cement their position in a marketplace not dominated by the US dollar.

Here are the Chinese territories that have already received their digital hongbao in order of value:

• Chengdu - 40.2 million digital Yuan ($6.2 million)
• Suzhou – 40 million digital Yuan ($6.1 million)
• Shenzen - 20 million digital Yuan ($3 million)
• Shanghai - 19.25 million digital Yuan ($3 million)
• Beijing - 10 million digital Yuan ($1.5 million)

While their international aspirations are still little more than a dream their lottery-style dissemination of the digital Yuan is a smart move.

Thousands of nationwide commercial enterprises have been upgraded to trade in the currency and as it becomes normal to transact with it the demand for the digital Yuan will naturally increase leading to a robust national trading currency.