The southern Chinese city of Shenzhen has launched a second digital currency trial releasing virtual hongbao -- or red packets -- to the public. People can start using the money from Thursday. CGTN's Zhao Yunfei visits some restaurants and stores around Shenzhen to speak with customers trying out the new payment method.

Dim Sum, a traditional Cantonese food. Every morning, people flock to this dim sum eatery for its familiar tastes. But today, customers are trying something different, a new way to pay their checks. The restaurant is encouraging customers to pay with digital yuan, a mobile currency that doesn't have any service fees.

ZHANG ZHIWEN General Manager, Phoenix House Restaurant "No service fee means we as a company can save a lot of money. Of course, we would be happy if people pay with digital Renminbi."

ZHAO YUNFEI Shenzhen, Guangdong Province "Thanks to the new technology, the Digital RMB app allows you to pay even without internet connection. That means technically it's a cash transaction, but all in digital."

The digital Renminbi is a sovereign currency initiated by China's central bank. Local Shenzhen banks on Thursday released red packets of the currency, containing 200 yuan, or thirty-one U.S. dollars, each. 100-thousand residents will be able to use money via lottery system, twice the participants in the first trial in October.

SHU YUMIN Deputy Governor, Shenzhen Futian District Government "Conducting digital Renminbi trials, developing its applications, and seeking ways of international cooperation, these are the tasks the central government has given us. We're finally implementing them."

Shenzhen is China's technology hub, providing vast infrastructure for innovation, making it the perfect place to test the currency. Experts say the pilot program shows the country's drive to strengthen its financial technology.

ZHANG JINFAN Associate Professor, The Chinese University of Hong Kong-Shenzhen "The benefit is that your personal information and payment information is not known by the third parties. All the information goes to the Central Bank of China. In this sense, it's much safer for you."

From protecting privacy to preventing money laundering, all of this is possible with digital currency, which experts say will lead to stronger financial regulation.

Zhao Yunfei, CGTN, Shenzhen, Guangdong Province.