Shanghai Cites Blockchain as Key Innovation That Can Power its Digital Economy

The government of Shanghai in its “14th Five-Year Plan for Shanghai’s Digital Economy Development,” has identified blockchain technology as one of the key innovations that can help advance its projected digital transformation. 

According to the notice issued by the office of the government of Shanghai, there is an active projection to increase the quota of the digital contribution to the economy per Gross Domestic Product (GDP) to 3 trillion yuan, accounting for more than 60% of the total GDP by 2025. This projection is not just bullish but also highlights how the government believes in the power of data to bring about positive development.

Shanghai hopes to draw on key aspects of technological innovations to achieve its goals set out in the five-year plan.

“The new digital track and new kinetic energy continue to grow. Focus on breakthroughs in a number of key technologies in key areas such as artificial intelligence, blockchain, cloud computing, and big data, and cultivate a number of blockbuster products, digital technology innovation, and digital products in intelligent connected vehicles, wearable devices, intelligent robots, etc. Supply capacity has been significantly improved,” the detailed notice reads.

Through this blockchain and other tech capabilities, Shanghai hopes to welcome many blockchain startups that can contribute in a meaningful way to the region’s economy.

China’s Bittersweet Relationship With Crypto

The relationship between the Chinese government and the digital currency ecosystem is best described as a bittersweet one. The People’s Bank of China (PBoC) has long banned cryptocurrencies as a means to transact while the government has not spared crypto miners in its year-long crackdown, a trend that was further proven to be active with a Court declaring stablecoin transactions illegal.

Despite its negative stance toward crypto, the country has not seized its gas from championing blockchain-related innovations, a trend it wishes to power with its own Central Bank Digital Currency (CBDC) dubbed the e-CNY.

It is yet unclear how China will fit into the future of Web3.0 from its current negative stance, but it sure is making quite an enormous commitment to the metaverse world.