The People’s Bank of China is preparing to launch the digital currency, which would make China the first major economy in the world to introduce such a system. Authorities in the city of Suzhou in eastern China distributed 20 million digital yuan, equivalent to $ 3.1 million, to local residents through a lottery in December. Each of the 100,000 winners received 200 yuan to spend on online or offline purchases. The trial expanded the scope of the pilot program by testing the digital yuan on online stores and introducing an electronic payment method that does not require an Internet connection. The new digital currency offered by the central bank does not involve transaction fees, unlike Alipay, WeChat Pay and Chinese commercial banks. The new currency could allow the central bank to impose negative interest rates on cash in extreme economic circumstances to encourage consumers to spend.