The rapid evolution of digital currencies is reshaping the global financial landscape, and Shanghai is positioning itself at the forefront of this transformation. On November 28, 2021, a high-level academic forum titled Cryptocurrency Trends and the Path Forward for Shanghai’s International Financial Center was successfully held via Tencent Meeting, hosted by the Digital Finance Industry College of Shanghai University of International Business and Economics, with support from the School of Financial Management, the Sun Haiming Studio, and the U.S. Research Center.
Drawing nearly 200 participants including experts from key institutions such as the Lingang New Area Administrative Committee, Shanghai Customs, Shanghai Academy of Social Sciences, Shanghai Municipal Development Research Center, Shanghai Gold Exchange, and Jianghai Securities, the forum offered deep insights into how digital currency innovation can accelerate Shanghai’s ambition to become a world-class financial hub.
Keynote Address: Strengthening Financial Innovation in Lingang
Professor Wu Wei, Deputy Director of the Lingang New Area Management Committee, delivered a keynote speech titled Enhancing Shanghai’s Financial Competitiveness Through Sci-Tech Finance. He emphasized that science and technology enterprises face unique financing challenges—long R&D cycles, high risks, and intangible assets—that require tailored financial solutions.
To address these needs, Professor Wu advocated for building a sci-tech financial ecosystem that integrates venture capital, banking, and policy support. He highlighted innovative models such as loan-investment linkage, where banks collaborate with investors to jointly fund startups, reducing risk while accelerating capital flow. Such mechanisms are crucial for nurturing innovation-driven growth in Lingang—a special economic zone designed to lead China’s next wave of financial openness.
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Thematic Reports: From Ancient Currency to Digital Sovereignty
The Historical Lens: Lessons from China’s Monetary Past
Mr. Zhao Wenbin from Shanghai Customs presented The Evolution and Counterfeiting of Ancient Chinese Currency, tracing monetary development from shell money to paper notes. He identified four enduring themes: convenience, state monopoly, inflation, and counterfeiting—all of which remain relevant in today’s digital age.
His central argument? Security must be the top priority in digital currency design. Just as dynasties collapsed due to currency devaluation or forgery, modern economies must guard against cyber threats and systemic vulnerabilities in digital payment systems.
Digital Yuan: A Catalyst for RMB Internationalization
Dr. Liu Gongrun, Deputy Director of the China-EU International Financial Institute at Lujiazui, outlined a bold vision in his report: Digital RMB—Building the World’s Leading Central Bank Digital Currency (CBDC).
He argued that domestically, the digital yuan should serve as the backbone of a fully integrated digital economy, streamlining tax collection, social welfare distribution, and financial inclusion. Internationally, it offers a strategic tool for RMB internationalization, enabling faster cross-border settlements and reducing reliance on SWIFT and the U.S. dollar system.
By piloting digital yuan corridors with Belt and Road partners and free trade zones, Shanghai could become a gateway for offshore RMB circulation—a critical step toward global monetary influence.
Gold, Reserves, and Digital Trust
Ms. Huang Lingyan from the Shanghai Gold Exchange delivered a compelling analysis: Gold Strategy in the Era of Digital Currencies and Financial Center Development. Her core thesis? The credibility of any digital currency ultimately rests on sovereign backing—and gold remains the ultimate reserve asset.
While blockchain ensures transaction efficiency, public trust hinges on convertibility and stability. With over 2,000 tons of gold reserves, China has the foundation to anchor confidence in the digital yuan. Ms. Huang suggested integrating gold-backed financial products into the digital ecosystem—such as tokenized gold or hybrid savings instruments—to strengthen Shanghai’s role as a global asset management center.
Capital Markets in a Digital Age
Mr. Yin Wei from Jianghai Securities explored Cryptocurrencies and the Future of Capital Markets. He noted that digital currencies are not just payment tools—they’re reshaping monetary transmission mechanisms, policy implementation speed, and market competition dynamics.
For securities firms, the rise of CBDCs means adapting to real-time settlement systems, programmable money (e.g., smart contracts for dividends), and new trading platforms. To stay competitive, traditional institutions must embrace digital transformation or risk being disrupted by agile fintech players.
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Regulatory Innovation: Privacy Computing Meets Crypto Oversight
Dr. Fang Yan, Associate Professor at the U.S. Research Center, introduced an emerging frontier: privacy-preserving computation in crypto regulation. As blockchain enables transparency, it also raises privacy concerns—especially when handling sensitive financial data.
Her solution? Privacy computing technologies like secure multi-party computation (MPC) and federated learning can allow regulators to monitor illicit activities (e.g., money laundering) without accessing raw user data. This balance between oversight and privacy is essential for building public trust in digital finance.
Panel Discussion: Bridging Policy, Technology, and Public Trust
Moderated by Professor He Huanlang, Director of Scientific Research Office, the panel brought together thought leaders who stressed three key points:
- Innovation must be paired with risk control: As沈桂龙 (Shen Guilong) from Shanghai Academy of Social Sciences noted, technology reshapes finance—but also introduces new systemic risks.
- Legal frameworks need upgrading:杨逸淇 (Yang Yiqi) from Wenhui Daily called for robust legislation to govern digital currency use, protect consumer rights, and establish Shanghai standards in digital finance.
- Public awareness matters:罗志松 (Luo Zhisong) from Shanghai Municipal Commerce Commission emphasized that for digital RMB to succeed, citizens must understand its benefits—and feel confident using it instead of Alipay or WeChat Pay.
Academic Response: Preparing the Next Generation of Digital Finance Talent
Professor Zhang Tiezhu, Dean of the School of Financial Management, concluded the forum by highlighting the institution’s response to industry shifts. The university has launched a Digital Finance Experimental Class to equip students with skills in blockchain, data analytics, AI-driven risk modeling, and regulatory technology (RegTech).
This initiative reflects a broader mission: aligning academic research with national development goals—particularly Shanghai’s ambition to become a top-three global financial center by 2035.
Frequently Asked Questions (FAQ)
Q: What is the main goal of China’s digital yuan (e-CNY)?
A: The digital yuan aims to modernize China’s payment infrastructure, enhance monetary policy efficiency, promote financial inclusion, and support RMB internationalization through secure, traceable digital transactions.
Q: Can digital yuan replace Alipay or WeChat Pay?
A: Not exactly—it complements them. While Alipay and WeChat are third-party payment platforms, the digital yuan is legal tender issued by the central bank. It works offline and doesn’t require an intermediary, offering greater resilience and control.
Q: How does gold support digital currency credibility?
A: Gold acts as a reserve asset that backs national currencies. In times of economic uncertainty, strong gold reserves boost confidence in a country’s ability to honor its digital currency obligations—making it a strategic component of monetary stability.
Q: Is privacy protected in digital currency transactions?
A: Yes—with safeguards. The digital yuan uses “controllable anonymity”: small transactions remain private, while large or suspicious ones can be traced by authorities to prevent crime—a balanced approach between freedom and security.
Q: What role does Shanghai play in China’s digital finance strategy?
A: Shanghai serves as a pilot zone for fintech innovation, including digital RMB trials, blockchain integration in trade finance, and green digital bonds. Its goal is to become a global benchmark for secure, inclusive, and technologically advanced financial services.
Q: How can students prepare for careers in digital finance?
A: By mastering interdisciplinary skills—coding (Python, Solidity), data science, economics, cybersecurity, and regulatory compliance. Universities like SUIBE are launching specialized programs to meet this growing demand.
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This forum not only illuminated critical pathways for integrating digital currencies into Shanghai’s financial architecture but also underscored the importance of collaboration between academia, government, and industry. As technology accelerates change, strategic foresight—and bold experimentation—will define which cities lead the next era of global finance.
Core Keywords: digital currency, Shanghai international financial center, digital RMB, CBDC, gold reserves, financial innovation, privacy computing, digital finance education