Explore Shanghai’s race to establish a blockchain infrastructure by 2025, fueling global ambitions.
Shanghai declared ambitions to build a blockchain infrastructure with the goal of streamlining the operations of its government, public services and economy. By 2025, the government wants the blockchain infrastructure to be completely operational. In accordance with a CoinGeek post, Shanghai is aiming to become a global hub for blockchain technology. The municipal administration intends to establish five research and development firms as part of the program, which will be managed by a “market-led, industry-university-research collaboration,” in order to draw top talent and concentrate on innovation.
The Shanghai government will be aiming to test blockchain technology in a variety of areas, including carbon reduction and supply chain finance, as it starts to create the framework for the massive initiative.
James Wester, Director of Cryptocurrency and Co-Head of Payments at Javelin Strategy & Research, said that this is yet another illustration of China’s continued support for blockchain technology. The Chinese government has recognized it as a strategic technology since 2019 and has created a number of incentives and initiatives around the country to promote the creation of use cases.
Although the initiatives in Shanghai are consistent with the general interest and investment in blockchain in China, he noted that the Chinese are not as interested in decentralized applications.
Cryptocurrency Is No Longer a Side Issue
Over the past few years, the financial environment has undergone a significant change as a result of cryptocurrency. And because of its quicker payment processing and reduced transaction costs, it is now taking into account in international trade.
The cryptocurrency market is anticipated to reach a value of over $2 trillion this year, and it continues to draw new participants and virtual currencies that are ready to take advantage of these prospects.
Security, quicker payments, and lower transaction costs are all undeniable benefits of cryptocurrencies, but there is still the proverbial elephant in the room: Due to its volatility in the market, it faces real difficulties that could result in significant losses.
The ongoing threats of regulation from governments all over the world, which many believe could be the entry point for illegal activity, only serve to exacerbate these difficulties.
There is no doubt that cryptocurrency has left its imprint on the financial environment, despite the fact that there is still much to be worked out within the crypto scene. And the Shanghai government has already made significant bets on cryptocurrency because it recognizes its potential.