Release of the Web3.0 Innovation Ecosystem Construction Report, Experts Discuss Industry Development Prospects

Recently, a research report on the construction of the Web3.0 innovation ecosystem in Shanghai for 2024 was publicly released at a press conference. Representatives from the government, academia, and industry unanimously agreed that the development of Web3.0 is of great significance to the information technology industry. This report, guided by the Shanghai Municipal Science and Technology Commission and jointly published by the Liberation Daily and the School of Economics of Fudan University, is the first industry research focused on the Web3.0 field in Shanghai.

The industrial ecosystem is taking shape, and RWA has become a new focal point.

The report outlines the current global Web3.0 ecosystem through extensive research on upstream and downstream enterprises in the Web3.0 industry chain. This ecosystem is based on a diverse computing power network, a distributed data storage network, and a high-speed communication network, with blockchain infrastructure at its core. Currently, core blockchain technology innovations are active, and the industry scale is steadily growing. A pattern dominated by Ethereum and coexistence of multiple chains has formed globally.

Experts are generally optimistic about the emerging field of "RWA" (Real World Asset Tokenization). In the next 5 to 10 years, with the exploration of various national governments, regulatory agencies, and financial institutions, traditional finance and RWA will accelerate their integration, potentially leading to the formation of multiple tokenized trading networks for funds and assets globally, promoting interconnectivity in global financial payment transactions.

Currently, the financial assets and technology of Web3.0 have started to gain recognition from governments and mainstream financial institutions in multiple countries. Forms of tokenized funds such as fiat-backed stablecoins, tokenized deposits, and central bank digital currencies (CBDC), as well as asset tokenization represented by RWA, are rapidly developing.

For example, the International Monetary Fund (IMF) is developing a CBDC platform to facilitate cross-border transactions. In March of this year, a large asset management company launched the first tokenized fund on the Ethereum network. Central banks in places such as Hong Kong, Thailand, mainland China, and the UAE are also jointly developing a multilateral CBDC bridge platform project aimed at improving the efficiency of cross-border payments.

The Hong Kong Monetary Authority recently announced the list of the working group for the wholesale CBDC project Ensemble to support the interoperability between CBDC, tokenized currencies, and tokenized assets. This is seen as a key step for Hong Kong towards the RWA market.

A representative from a certain blockchain platform pointed out that the proliferation of stablecoins and RWAs is an inevitable path for the development of blockchain and cryptocurrency technologies. With the approval of Bitcoin spot ETFs, stablecoins and RWAs are expected to enter a rapid development phase, thus driving the growth of the entire Web3 industry.

Mainstream capital entering the market, top-level design is indispensable

Alongside the development of RWA, ETFs are attracting mainstream capital to flow into the Web3.0 market. In January 2024, the U.S. Securities and Exchange Commission (SEC) first approved a Bitcoin spot ETF. In April, the Hong Kong Securities and Futures Commission also approved Bitcoin ETF and Ethereum ETF products from multiple institutions. On June 20, Bitcoin ETFs were listed on major securities exchanges in Australia for the first time. The report suggests that the listing and trading of spot ETFs will significantly enhance market liquidity and further drive ecological innovation and development.

The report points out that with the listing of cryptocurrency ETFs, the goal of Hong Kong becoming a Web3.0 hub is becoming increasingly clear. From the beginning, the Hong Kong market has adopted a prudent and sustainable approach to mainstream capital entering the Web3.0 market, including measures such as relevant legislation and the introduction of a "dual licensing" regulation.

Referring to the practices of the Hong Kong market, the report and participants believe that strengthening top-level design is one of the key factors in the current development of Web3.0.

A laboratory director pointed out that Web3.0 is in the early stage of great development, equipped with the technical conditions, but still needs to wait for the triggering of macro monetary policy and regulatory policy. He emphasized that due to the lack of a unified global regulatory system, there are still speculative and fraudulent risks in the market, which poses a long-term challenge to the healthy development of Web3.0.

Experts suggest in-depth research on "Token Economics"

Multiple experts suggest that government departments should accelerate the research and formulation of token regulation policies to provide security for the "token economy" and digital assets. With the advent of the Web3.0 era, "token economics" is on the rise, and governments, universities, and research institutions can conduct in-depth studies on this economics to provide academic support for the prosperity of the next generation of the internet and the construction of an innovative regulatory system.

How to balance regulation and Web3.0 innovative applications is considered the key to whether Web3.0 can develop healthily and rapidly.

Shanghai Web3.0 Development Prospects

The report believes that Shanghai has conducted beneficial explorations in a systematic, institutional, market-oriented, and rule-of-law manner in the development of Web3.0. Under the guidance of relevant policies and plans, the Web3.0-related industries, represented by blockchain technology, continue to advance, driving the rapid development of the digital economy and contributing to the construction of Shanghai as an international science and innovation center.

The report suggests that in the era of Web3.0, Shanghai can make contributions in the following six areas: fully leverage the advantages of the digital economy to provide a foundation for the construction of the Web3.0 ecosystem; introduce special support policies in the Web3.0 field; increase financial support; promote the construction of a standard system; create a high ground for industrial ecological innovation; and innovate the construction of the regulatory system.

In summary, Shanghai can leverage its advanced technologies and rich experience in fields such as financial technology, artificial intelligence, and cloud computing, combined with the characteristics of its industrial structure, to lead with industrial digitalization, transform traditional productivity into new quality productivity, and promote the application of the Web3.0 industry through a strong digital economy foundation.