Shanghai Unveils Bold Blockchain And Digital Innovation Plans For Industries

Key Points:

• Shanghai government releases guidelines to promote blockchain, digital yuan, and metaverse adoption in real-world industries.
• The plan includes blockchain-based platforms for commodity trading, e-commerce, and digital transformation in legacy industries.
• Shanghai’s move aligns with China’s focus on leveraging blockchain’s cost-efficiencies and boosts efficiency in managing commodity settlements with the digital yuan.

The government of Shanghai has taken a significant step in embracing blockchain technologies, the digital yuan, and the metaverse, with a recent publication of guidelines aimed at fostering adoption in various industries. The move aligns with China’s larger goal of integrating blockchain to achieve cost efficiencies in real-world sectors.

The comprehensive plan encompasses the development of blockchain-based platforms for commodity production, supply, and trading, as well as e-commerce platforms focused on industrial products. Additionally, the guidelines aim to facilitate the digital transformation of legacy industries by utilizing blockchain technology.

Key use cases outlined in the guidelines include the implementation of blockchain and IoT technologies to manage carbon emissions and the creation of a blockchain-based platform for the automotive industry. Ge Dongbo, Chief Engineer at the Shanghai Municipal Commission of Economy and Informatization, expressed these initiatives in a recent press release.

The Shanghai report titled “Guidelines on the High-Quality Development of Manufacturing Internet Service Platforms” categorizes blockchain as a core technology alongside artificial intelligence (AI), big data, the Internet of Things (IoT), and the mobile web. This reflects the city’s focus on advancing its manufacturing internet service platforms through cutting-edge technologies.

The latest guidelines build on the three-year development plan for local manufacturing industries, which was released on June 15 and already included provisions for blockchain technologies.

Furthermore, the Shanghai Clearing House, a prominent counterparty and clearing company in Asia, recently introduced support for operations and settlements using the digital yuan, the Chinese central bank digital currency (CBDC). Customers can now settle bulk commodity payments with the digital yuan, streamlining the process and increasing efficiency.

China‘s status as the second-largest global commodities importer in 2021, accounting for $2.68 trillion in purchases, further emphasizes the significance of integrating the digital yuan into commodity settlements.

As a leading hub for China’s blockchain industry, Shanghai had already established its first blockchain industrial complex back in June 2020. The city is also home to AntChain, the blockchain branch of Ant Group, China’s renowned financial technology giant. With these initiatives, Shanghai is well-positioned to further drive innovation and adoption of blockchain technologies in various sectors.

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