In an effort to attract more users, China’s CBDC wallet app, Digital Yuan, includes the ability for users to deposit money electronically in the classic “Red Packet”.
Chinese CBDC wallet to drive adoption
According to a report Dec. 26 and according to the South China Morning Post, the new product was released over the weekend, about a month before the Chinese New Year on Jan. 22.
The “Red Packet”, also known as hongbao in China, is often used to give money as a sign of good luck during Chinese New Year celebrations and other occasions. Well-known companies such as WeChat Pay and Alipay are now distributing red envelopes well for the growing use of digital commerce.
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The Introduction of the Red Package for Painting
The e-CNY app will allow red packets to be delivered to one recipient or a “raffle draw” set up for a group of recipients in which each will receive a random sum from the kitty. Both WeChat Pay and Alipay offer similar services.
Users have the option to choose package covers with New Year greetings, birthdays, and “Booming China” greetings. On October 10, digital transactions in yuan reached a milestone of $14 billion (100 billion yuan), an increase of only 14% from the $12 billion (87.6 billion yuan) reported by the People’s Bank of China at the end of 2021.