Various countries and governments have remained friendly towards crypto, creating a favorable environment. One is the Shanghai government, aware of the need for these developments. It has ensured that its citizens remain abreast of the developments compared to the rest of the world. It has adhered to the development principles and provides opportunities for its citizens to explore digital technologies.
It has released the details of the 14th five-year plan specifically focused on developing digital technologies. It will help create and develop a digital economy, attracting capital to the state. It is an opportunity for investors, developers, and other skilled workers in digital technology.
Here is a brief overview of the Shanghai government’s five-year plan and how it will foster the development of the mentioned technologies.
Development of Web 3 technologies and the Shanghai government
China has remained one of the leading competitors in developing digital technology. Its government is aware of the global developments and the need to stay relevant in this competition. It is important for it strategically and to fulfill its commercial needs. Therefore, it has been focused on providing a favorable environment for these developments.
The latest came from the largest city in China, Shanghai, where the government has included Web 3, NFTs, and blockchain in the upcoming five-years plan. It published the details of the 14th five-year plan on 13 June, showing a tendency towards developing these technologies. The details show that the Shanghai government is ready to go to any limits to keep itself relevant in this regard.
The mentioned city is directly administered in China. It has taken the initiative in light of Xi Jinping’s vision for the future and its plans for years until 2035. The details show that it is part of the national economic and social development policy outline. According to the outline, it will promote the integration of digital technology and the real economy.
14th 5-year plan and its focus on Web 3 technologies
According to the document, the Shanghai government will create opportunities for scientists to judge technological prospects and work on the market demand. They have separate sections for NFTs, blockchain, and other digital assets. It has plans to work on spending funds on development and innovation for these technologies. The plan expresses interest in developing the metaverse and merging the real and digital world. There will be opportunities for immersive technologies to help promote the virtual world.
The plan also has expressed interest in the digital interaction of citizens through concerts, sports, and other digital events. It has also plans to work on the exploration of technologies like distributed data storage, multi-platform OpenID, end-to-end encrypted technology, etc. There is one point where the plan remains silent: decentralized finance (DeFi), which is considered the backbone of these technologies.
Instead, there is a focus on CBDCs, which are being promoted by China’s central bank in the form of the Digital Yuan. Along with that, there is an emphasis on developing smart cities, digital health, low-carbon energy, etc. As China has remained strict about cryptocurrencies, the ban seems likely to continue.
The Shanghai government has released the details of its five-year plan, specifically focused on the development of blockchain, etc. Its details show that the Shanghai government intends to take benefit of the developments in this field and to remain relevant commercially. According to the plan, it will spend on ventures in blockchain, Web 3, and NFTs. While it will also work on creating opportunities for businesses that want to explore these areas. The mentioned plan remains completely silent about DeFi while promoting CBDCs like Digital Yuan.