Paving the Way for Digital Economies

In an ambitious move to solidify its position as China's major financial and technological hub, Shanghai unveiled a groundbreaking plan to establish a blockchain infrastructure by the end of 2025. The government report, released on Monday, outlines the city's intention to collaborate with Hong Kong and Singapore, focusing on various sectors such as digital assets, transportation, industrial internet-of-things, supply chain finance, and carbon management.

While the report does not disclose any specific investment figures, it reveals a comprehensive strategy. This includes the construction of a dedicated blockchain network and computing power clusters designed to support blockchain applications in essential areas like local government affairs, public services, and real-world economic activities.

The objective, as stipulated in the plan formulated by the Shanghai Municipal Commission of Economy and Informatization, is for Shanghai to lead the global transition towards digital-based economies. The city has been actively releasing several plans revolving around Web3 technologies, which represent the future evolution of the internet based on blockchains, non-fungible tokens (NFTs), and the metaverse.

Earlier this year, in June 2023, Shanghai announced a three-year initiative to rejuvenate its manufacturing industries using Web3 technologies. Subsequently, in July, the city set an ambitious target of generating an annual revenue of US$6.9 billion by the end of 2025 through its culture and tourism metaverse projects.

Shanghai's latest initiative signifies a powerful step towards transforming itself into a global leader in blockchain innovation and digital economy integration. With the region's financial prowess and commitment to technological advancement, the plan holds immense promise for the future of blockchain in China and beyond.