Blockchain against Coronavirus: China seeks Redemption

Blockchain against Coronavirus: China seeks Redemption

China’s political and economic system is at its worst possible time because of coronavirus. Several Chinese businesses and factories are now struggling to reopen business activities. The majority of businesses’ are operating below their capacity due to the Coronavirus plague. Chinese Government is using every tactic to tackle this virus and to minimize its effect on the populous. Nodoubt, china is the world’s second largest economy and you can see their growth over time.

China- World’s second-largest economy
Source: https://www.cnbc.com/2020/02/05/coronavirus-how-china-economy-has-changed-since-sars.html

Breakdown of China’s Economy because of Coronavirus

In today’s date, China is now the 2nd-largest economy in the world, estimating for 16% of global GDP. Whereas in comparison, in the same time period, the U.S GDP never topped 3%. Anyhow, china’s overall GDP is almost 9 times larger than it was during the SARS outbreak in 2002-2003. But due to this deadly plague, it had impacted China’s Economy, along with Japan and Vietnam. As they import material and parts from china. I won’t be wrong if we say they relay on the Chinese supply chain.

Breakdown of china economy
Source: https://www.cnbc.com/2020/02/05/coronavirus-how-china-economy-has-changed-since-sars.html

But now china grapples due to coronavirus, the economic damage is mounting around the world. Businesses are dealing with great loss in revenues and disrupted supply chains due to china’s factory shutdown. 10 million people remain lockdown in dozens of cities because of the corona.

China Needs Blockchain Technology – and the World Needs China to Recover

The pandemic plague has hit a lot of economic activities and transactions in the world. Sadly, several crypto conferences and events have bee postponed or closed because of this outbreak. A devastated economy of China, bring a devastating effect on the world market too. The blockchain technology is easily available to China 2019s beckon to weather the storm.

As the United state-backed away, china had an opportunity to move into high-potential technology by investing in blockchain. China’s most important goal in developing blockchain would be to help create a digital currency. Not any new cryptocurrency like Bitcoin, simply making already – the existing monetary base digital. Blockchain can be fundamental for tracking & recording transactions & creating a new unit controlled and distributed by the regime. It can further enable china’s digital economy where half of all digital transactions Totaling over 9 trillion last year.

The Rise of Emerging Tech in China

China is indeed aiming for technology supremacy, pumping billions into emerging industries from biotech to artificial intelligence. But digital currency would enable China to not only harvest the benefits of digital transactions, but also possibly gain a look at where the money is being used, and by whom, restricting money laundering and following a growing environment of surveillance.

Along with that, blockchain serves as a barrier against international cryptocurrencies. And also helps the government to retain control of the money supply.

 Moreover, this would help easily China’s increasingly cashless society. 

Deployment the Effect of Coronavirus with Blockchain Technology

IN this deadly storm, blockchain might be the closet port to help them to get out of it. Let’s hope they opt for it, because of china’s economy whole world economy is at stake. China is organizing to dispersed technology, requiring that all “nodes” using the blockchain register with the government and provide information on their users. It doesn’t help to achieve blockchain’s goals of privacy and transparency. But In contrast, it has implications for human rights as China traces loyalty through financial transactions. As data is astonishingly complicated to be edited once added to the blockchain, it makes participating in party loyalty apps and purchasing censorship-free materials, becoming more difficult to avoid as China moves towards a more cashless society.