Shanghai’s administrators are keen on integrating blockchain technology into the city’s digital economy, unveiling an implementation plan to achieve the objectives.
In an announcement, the city’s government noted that the implementation plan is designed to bring it closer to its goals of streamlining processes using blockchain technology. The plan will see blockchain and other Web3 technologies deployed across Shanghai’s public services, governance, and the wider economy.
The government says that it expects a robust blockchain infrastructure to be in place by 2025 that will power a range of industry applications. Shanghai’s new blockchain technology push will be piloted by a “market-led, industry-university-research collaboration” as it eyes establishing an international hub.
To achieve its targets, the government is placing a premium on independent innovation of core technologies. Five new research and development institutions are expected to be established in Shanghai to “gather high-end talents, and lead innovation and development.”
The blueprint indicates that the city will be experimenting with blockchain technology in several areas, including shipping logistics, cross-border trade, supply chain finance, credit system, and carbon reduction.
“Provide diversified services for enterprises and related platforms in the field of digital trade, improve the transparency and timelines of cross-border trade information, and improve the efficiency of multi-party collaboration,” read the announcement.
Shanghai’s plan involves the use of uniform sector development, hinging on industry collaboration and interoperability. The city is also eyeing the establishment of a common blockchain technology standard for industry players as part of efforts to achieve its lofty ambitions.
Despite the push to integrate blockchain technology into its digital economy, Shanghai’s blueprint indicates a string of safety measures. The first is a plan to “strengthen organizational leadership” with an expert committee formed to participate in a coordination role.
The city is keen on establishing a security system to provide risk assessments and early warnings to prevent breaches by bad actors. Priority will be given to the financial industry, ensuring that stakeholders are in compliance with industry best practices.
The metaverse and CBDCs to play leading role in Shanghai
Towards the end of July, Shanghai’s government unveiled plans to leverage the metaverse and central bank digital currencies (CBDCs) to improve its economy.
The official disclosure noted that embracing the digital yuan could improve e-commerce service platforms in the city. On the other hand, the city noted that legacy industries may integrate the metaverse for efficiency and real-world simulation of their products before a public rollout.
China’s economic hub expects to gain $7 billion from its previous metaverse investments. Still, Shanghai has to stave off fierce competition from Beijing and other Chinese cities.
To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChain’s CBDC playbook.
Watch: Blockchain provides perfect foundation for CBDC
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