China Expands Digital Yuan Use to Lottery Draws and Government Payments

China has begun using its central bank digital currency for lottery prize payments and selected government expenditures. The digital yuan is now accepted for lottery draws in several provinces. Officials said the change allows winners to receive funds directly into digital wallets without bank transfers.

Separate pilots have routed fiscal payments through the digital yuan in two cities. Local authorities reported that subsidies and procurement invoices were settled faster under the new system. The same pilots recorded a 12 percent drop in processing time compared with traditional bank channels, according to internal figures cited by state media.

The digital yuan has circulated in limited retail and transit settings since 2022. Recent measures widen its reach to additional state-linked services without altering existing cash or bank options. No nationwide mandate has been announced. Participation remains voluntary for both merchants and recipients.