How Can Digital Yuan End Poverty In China?
Do you think that the Digital Yuan has the power to change the whole economic progress of China?
It is highly probable! Creativity is what leads other countries to great innovations. We should stop judging an idea without knowing the thing that revolves around it.
As we all know, every country has its own rules and regulations. But what connects each of us is that we have this never-ending history of poverty. China, with a very high population rate of almost 1.4B, has 1.15% of its people living below the poverty line. We can describe them as the poorest of the poor. Given these economic constraints, the rate is still not bad compared to the US where the below poverty line rate makes up almost 10% of the country’s population.
China in 1980
To aid the cry of its people, in 1980, China launched thirteen 5-year plans for the betterment of the whole society. It was offered by the government to provide economic and social development for the poor people. In 2016, the country’s 13th plan took place. It targets to bridge the far welfare gap of the whole population and completely destroy China’s poverty rate in 2020. Did it happen? Is the plan effective? Well….
China in 2020
In 2020, the Coronavirus happened. The whole world was affected, especially China. Their most current plan was a very bold attempt. It might not get rid of the presence of poverty but it drastically decreases the rate. More than 800 million poor people have been aided since the Republic of China was founded.
Rural areas in China have been the main focus of the government. They are aided and assisted but helping them improve financial status is the hardest part. Most residents of the rural population are a family of farmers. They have a big contribution as the main food source of the country but it’s also a fact that farmers cannot own the land. Their only chance to get out of poverty is by sending a family member to the city to work. Access to technology would be the easiest way for every city-dweller to send money to their respective family. This is where the Yuan coin comes in. It offers no remittance charges and requires no internet connection. In return, every citizen anywhere in China can live a better life.
China in the next decade
The government is continuously making research as to how they can run a better economy. This is the birth of China’s digital currency. The goal is to help 16 million citizens consistently improve their financial standing.
But how would they filter those in need of partial and complete assistance? So there are these people who love exploiting the benefits they could get from the government, whether they genuinely need it or not. To avoid that, the government will give every family and working citizen who claims to be living below the poverty line a smartphone. With the use of this phone, they can access their digital wallet for the Digital Yuan.