Users conducted nearly 20,000 transactions in digital yuan (DCEP) on JD.com within the first 24 hours of the Suzhou trial, Global Times reports.
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Municipal authorities gave residents 100,000 ‘red envelopes’ with a total value of 20 million yuan ($3 million) via a lottery on the eve of the Double Twelve online shopping festival on Saturday. The funds must be spent by December 27.
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According to JD Digits, the financial arm of the internet giant, the first consumer digital transaction was made two seconds after 8:00 p.m. on Friday, when the experiment began.
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The company said that almost 80% of electronic-currency payments were made by users under 40. At least one transaction exceeded 10,000 yuan (~$1,529).
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In addition to JD.com, around 10,000 shops in Suzhou are taking part in the experiment.
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The DCEP test in the city was more widespread than in Shenzhen, where in October among residents distributed 50,000 “red envelopes”.
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Cao Yin, managing director of the Shanghai-based Center for Digital Revival, says that despite active testing, the pace of DCEP rollout will be “cautious”.
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“In 2021, China will continue to look for additional scenarios for testing the digital yuan, but a full-scale launch remains unlikely,” he said.
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In his view, mass adoption of the digital currency in the country is expected to occur around 2023.
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“China should become the first country to launch a digital currency, while states such as the United States seek to generalize its experience and avoid risks. In a sense we can only compete with ourselves on this issue, and there is no need to rush,” Cao Yin stressed.
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Powell has said that for the United States it is important not to rush the launch of a digital currency, but do it properly.
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