Shanghai plans to invest $52bn into the metaverse as the Chinese capital seeks to build a digital infrastructure for its tech industry.
Hoping to complete plans by the end of 2025, the financial hub of China plans to develop the metaverse as a method of aiding the recovery of its economic conditions.
To add one, Shanghai will focus on the development of smart terminal industries and low-carbon initiatives.
China’s capital city aims to secure future developments of its tech sector and accelerate the process of the economy, which has suffered due to prolonged lockdown measures in certain parts of the country between March – May.
🇨🇳 Shanghai city government announced plans to develop a $52 billion #metaverse industry by the end of 2025.— Watcher.Guru (@WatcherGuru) July 12, 2022
“Industries such as the metaverse and smart terminals are expected to constantly spur new business schemes and models,” stated Head of Shanghai’s Economy and Information Technology Committee, Wu Jincheng. “These would give rise to ‘killer’ applications and popular products, releasing huge market value.”
Details on the proposed metaverse plans were outlined during a press conference, also stating that tech sectors would be worth a combined $224 billion in value by the end of 2025.
Furthermore, Shanghai plans to chip in with 10bn Yuan (£1.246bn) for additional funds towards the metaverse project. This will be helped with the backing of the Chinese metropolis which seeks to develop 10 prominent corporations and 100 minor businesses.
With a goal of launching up to 100 additional ‘benchmarking products’ by 2025, these latest moves from Chinese figures has caused confusion on its pre-existing stance of cryptocurrencies, which it aims to move away from.
The Chinese government and the Insurance Regulatory Commission has cautioned its population of the safeguards of the metaverse, citing possible illegal fundraising attempts.