The Shenzhen municipal government launched a digital currency trial program on Friday, a regular test in the process of research and development of the digital Chinese yuan.

The local government allows individuals in Shenzhen to take part in a lottery of 50,000 digital currency red packets totaling 10 million yuan ($1.49 million). The value of each red packet is 200 yuan.

The program is open to those who are in Shenzhen when they register, and allows them to register with their mobile phone numbers and identification cards.

Winners of the drawing will receive text messages giving instructions on how to download a digital yuan application, open a personal digital wallet and receive their red packets.

From 6 pm, Oct 12 to 12 am of Oct 19, winners can pay by digital currency red packets -- in the same as paying in cash -- at 3,389 merchants in Luohu district of Shenzhen, Guangdong province. Having completed modifications for a digital yuan system, the merchants include supermarkets, retailers, restaurants and lifestyle services providers.