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July 13, 2022

Web 3 Is How Shanghai Will Create A $446B Digital Economy

Chinese officials have unveiled a new five-year strategy for the digital economy in Shanghai. Shanghai is regarded as China’s financial hub, making it the country’s largest city.

Shanghai’s digital future will be powered by blockchain technology, according to the policy document. NFT trading platforms and blockchain business models are also part of the government’s strategy.

Chinese Premier Xi Jinping’s opinions on socialism with Chinese characteristics are laid forth in the policy document, which advocates for the deep integration of digital technology and the actual economy.

Shanghai’s administration wants the city’s digital economy to grow to 3 trillion yuan or around 60 percent of the city’s GDP. An important aspect of the strategy is the implementation of blockchain digital infrastructure.

An unequivocal endorsement of NFT trading platforms and NFT digitalization by prominent corporations are stated by the government.

Using blockchain to enhance financial applications is highlighted in the policy document. It also asks for the creation of ledgers, end-to-end communications, and smart contract systems based on the blockchain.

China has to make development in Web 3.0 technologies as well, according to the study. An emphasis is placed on the creation of products such as “OpenID,” “distributed storage,” “decentralized DNS,” and “end-to-end communication technology.”

Building a robust blockchain ecosystem and viable business models are Shanghai’s main goals in the blockchain sector.

New policy papers have been issued by Shanghai in an effort to grow the $52 billion Metaverse business. Achieving this aim will need using Blockchain and Web 3.0, according to that report.

The People’s Bank of China declared all crypto transactions unlawful on September 24th, 2021. As a consequence of China’s crackdown, the price of Bitcoin decreased by more than $2,000

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On the other hand, China said in January of 2022 that NFTs would be lawful, despite the fact that crypto transactions were still banned. An NFT marketplace will be built by a Chinese state-backed enterprise, Blockchain Services Network.

A Communist Party journal in China recently predicted that the value of cryptocurrencies will plummet to 0 in the near future.