A CBDC is a form of digital currency that can be used daily and issued by a nation’s central bank. Understanding all the potential implications may be challenging, but these digital yuan have massive use in the education sector. Now let us take a closer look at some of the significant implications that could happen when China introduces CBDCs.
Chinese schools have traditionally been sponsored by charitable organizations or communities, with private donations supplementing school budgets from time to time. However, once the digital yuan is issued, schools will have a separate line item in their budgets denoting the money they receive from the government.
The Chinese government has recognized that its current education system is in dire need of improvement, especially from an international standpoint. Making education more affordable, enhancing teaching quality and attracting more prospective overseas students could add to the Chinese economy’s growth potential in a big way. Moreover, if a CBDC is issued, schools will not just be more affordable; they will be able to track down students whose travel expenses are covered by their parents and require them to pay their share of fees.
It should make it easier for financially struggling families, who may be tempted to send children abroad to study at foreign institutions. Digital currency is also expected to allow for significantly faster transactions in China’s education sector and improve its overall efficiency level. They have little choice but to use paper textbooks and cheap teaching aids, leading to problems with the quality of education. Digital Yuan will give schools access to a broader range of e-books and other digital resources, as well as interactive whiteboards, projectors and other high-tech teaching equipment. Let’s discuss the use of digital yuan in the education sector.
1. Digital Yuan can digitize textbooks:
Traditional textbooks are printed on paper and, therefore, expensive to produce. Once digitized, textbook contents and learning materials can easily be shared by people among students and teachers via the internet. The digital yuan can also make it easier for students in China to gain access to foreign textbooks and educational learning materials. In addition, the digital yuan will make it easier for schools to manage their finances because they will not need to pay the printing companies or manufacturers that supply textbooks.
2. Digital Yuan can improve education quality:
Digital currency will allow students and teachers to access an excellent range of online educational resources, including interactive whiteboards, projectors, virtual reality headsets and other high-tech teaching equipment. It will be in addition to the current virtual high-speed internet and ultra-fast fibre-optic broadband already available. It will also make it easier for teachers to find high-quality educational resources relevant to their students.
3. Digital Yuan can help students improve their English:
By allowing students to pay for their education with digital currency, it will be easier for them to buy foreign textbooks and other educational learning materials from overseas. It will also give them access to the world’s largest network of professional English teachers who can help them improve their English abilities at a fraction of the cost they would otherwise pay if they were studying abroad.
4. Digital Yuan can help attract overseas students:
If a more affordable education system is introduced and international students are attracted to study at Chinese universities and schools, this will increase demand for digital yuan over time. In addition, it will make it easier for international students to pay their tuition fees and living costs at Chinese universities and draw them into other industries such as entertainment, media and tourism. More critically, this could also encourage more students from China to study abroad.
By using digital yuan in the education system, China will be able to address its citizens’ concerns and raise the education system’s standards. In addition, the use of digital currency in the education sector will allow Chinese schools to improve the quality of their teachers by providing a range of tools they need and attracting higher-quality teachers from around the world, including those from other countries in Southeast Asia.
5. Digital Yuan can digitize transactions in the education sector:
As people in China’s education system will use digital yuan, transactions in the education sector, including tuition fees and payments for teaching aids and whiteboards, can all be digitized. It will be especially beneficial for overseas students as they will not need to exchange their currencies for supporting local currencies and then convert them back again. Furthermore, the digital yuan could also significantly impact China’s export industry. 6. Digital Yuan can digitize transactions in the tourism and manufacturing sector:
With the digital yuan, it will be easier for Chinese manufacturers to sell their products to foreign markets and make it easier for foreign tourists and businesspeople to pay their fees in China. It will give manufacturers a competitive advantage over other countries that do not have access to such a cheap and efficient payment method. In addition, using digital currency allows Chinese tourists to make overseas transactions faster and more efficiently than with physical cash. It could also help them get better deals on overseas travel packages by making it easier for them to convert their yuan into other currencies at attractive, currently unavailable rates when they use physical currencies or credit cards overseas.