Digital Yuan- How it can revolutionize the entertainment industry
The Chinese government was leading the charge in creating a CBDC, and they also have plans to use digital currency as a mechanism for cross-border transactions. Digital Yuan can potentially disrupt and transform supply chain relationships globally. China’s digital currency program is part of a larger initiative to digitize the Chinese economy. China’s plan with the digital yuan will bring many benefits. Cross-border trade is vital for China’s economy, and it has been actively working toward expanding its global role in recent years.
The People’s Bank of China (PBOC) created prototypes for how its digital currency could work but did formulate an official plan for when or how people in the real world would implement it till 2020. For example, in the entertainment industry, it can reduce risk and increase revenue.
The global showbiz ecosystem is complex, with layers of stakeholders, including content creators, networks, media companies and talent agencies. Relationships are transactional rather than collaborative, and the lack of trust complicates business deals that require better collaboration.
The entertainment industry faces a similar problem to that of many other sectors: how to manage global content chains in a manner that reduces transaction costs. In addition, the industry is fragmented by the need to verify information such as revenue flows and fair value trades in real-time across multiple jurisdictions. As a result, the industry needs a more efficient mechanism for risk and value transfer.
One of the best ways to view the entertainment industry is in terms of its global production and distribution chain: content creation, financing, production, marketing, and distribution. Technology has increased the pace of change in this chain by shrinking the distance between producers and audiences; reducing barriers to entry on all sides; lowering trade barriers, breaking down intermediary levels and bypassing traditional intermediaries; changing how intellectual property is valued.
The entire showbiz ecosystem is changing due to new technologies that enable customization at scale across multiple dimensions – time (TV viewing), place (real-world spatial positioning), device (multiple screen sizes), etc. Let’s discuss how digital Yuan can revolutionize the entertainment industry.
- Digital Yuan can digitize entertaining content:
Digital Yuan can digitize entertaining content, which many entertainment companies want. However, regardless of how the technology is introduced, the digital Yuan must also be integrated into a digital payments system to be fully effective.
First and foremost, it must be linked to existing payment systems used by consumers. It will allow consumers to pay for things they see and consume online with their credit card or bank account. Digital currencies already exist on the market today and have different characteristics, such as Bitcoin and Litecoin.
They differ mainly in terms of accessibility (how easily one can purchase them) and usability (which platforms are available). Digital currency must be open for consumers to use and operate safely and securely.
- Digital Yuan can ensure the fair value of entertainment content:
Digital Yuan can ensure the fair value of entertainment content. The primary goal of digital currency is to eliminate transaction costs, which will allow market players to allocate resources better between different projects. Today, there are many trade-offs between quality and cost, but not all trade-offs are equal in value.
In this scenario, a networked system would adjust meritocracy to allow creative contributors to earn a modest income based on their contributions. It can also help independent artists secure funding for their productions by linking them with existing networks to finance projects.
To better allocate resources, the digital currency system would help in determining the fair value of an entertainment project across all platforms in which it is consumed. People will determine the fair value according to market and cultural conditions in each region or country where the content is consumed.
It enhances the economic and social benefits of digital currencies by helping networks provide a suitable platform for producers, distributors and users to contribute their skills and allocate resources more efficiently.
- Digital Yuan can improve efficiency across the global entertainment industry:
Digital Yuan can improve efficiency across the global entertainment industry by boosting collaboration between the production and consumption of content. Efficiency usually refers to a reduction in cost but can also refer to time savings or improvements in quality. In the case of digital content, improving efficiency also means increased accuracy and reliability, ensuring data integrity and reducing the risk of fraud.
Digital Yuan can boost collaboration by minimizing transaction costs – exceptionally high in cross-border transfers – while enhancing data integrity and trust between parties. Moreover, because these currencies already exist on the market today, there is no need to reinvent the wheel.
However, further research is required to determine which suits China’s digital needs best. Digital Yuan can create a new and more efficient global entertainment ecosystem based on fair trade principles, providing more choices for consumers worldwide. In addition, it will improve efficiency across the global entertainment industry by boosting collaboration between the production and consumption of content.