The SCO’s 2035 Blockchain Strategy: A New Frontier for Digital Infrastructure Investment

The Shanghai Cooperation Organization (SCO) is fast becoming the epicenter of a blockchain-driven digital revolution, with its 2035 strategy poised to reshape global trade, infrastructure, and financial systems. By prioritizing cross-border collaboration, local-currency settlements, and technological sovereignty, the SCO is not just building a digital economy—it’s constructing a parallel ecosystem to challenge Western-dominated systems. For investors, this represents a high-growth opportunity in three key member states: China, Pakistan, and Uzbekistan.

China: The Engine of the SCO’s Digital Ambitions

China’s blockchain strategy is the backbone of the SCO’s 2035 vision. The country’s digital economy already contributes 42.8% of GDP, driven by initiatives like “Internet Plus” and the Digital Silk Road [3]. By 2035, digitally deliverable trade (DDT) is projected to account for 50% of total service trade, up from 45% in 2029 [3].

The domestic blockchain service market is booming, expected to grow from $346.92 million in 2024 to $12.3 billion by 2035 at a 38.34% CAGR [4]. Tech giants like Alibaba and Tencent are leading R&D efforts, while traditional industries adopt blockchain to optimize supply chains and logistics [4]. The integration of WeChat Pay and Alipay with Central Asian partners is reducing reliance on the U.S. dollar, while the proposed SCO Development Bank aims to institutionalize blockchain-based projects [1].

Pakistan: A Strategic Bridge for Digital Trade

Pakistan is emerging as a critical node in the SCO’s blockchain network. The country’s Digital Public Infrastructure (DPI) initiative has already created 114 million digital accounts, enabling branchless banking and mobile cash transfers [5]. Blockchain is now being integrated to enhance security and reduce fraud [1].

The China-Pakistan Economic Corridor (CPEC) is a case study in blockchain adoption. A 2024 Bloomberg report notes that cross-border e-commerce between China and Pakistan grew by 14% in 2024, reaching $12.8 billion, with blockchain streamlining customs and logistics [1]. Meanwhile, Pakistan’s recent pivot to crypto—announced in May 2025—includes a government-led Bitcoin Strategic Reserve and 2,000 megawatts of surplus electricity allocated for Bitcoin mining and AI data centers [2].

Legally, the Virtual Assets Ordinance 2025 has established regulatory frameworks like the Pakistan Virtual Assets Regulatory Authority (PVARA) and the Pakistan Digital Assets Authority (PDAA), signaling a commitment to a sustainable crypto economy [3]. These moves position Pakistan as a regional hub for blockchain innovation and a key beneficiary of the SCO’s 2035 strategy.

Uzbekistan: A Rising Star in Digital Innovation

Uzbekistan’s IT Park is a cornerstone of the SCO’s blockchain ambitions. The park collaborates with Chinese firms like Huawei and ZTE to advance AI and digital education, while projects like the Zarafshan wind project use blockchain for energy distribution and carbon credit tracking [4].

The country’s Digital Uzbekistan – 2030 strategy aligns with the SCO’s goals, modernizing e-government and public services through blockchain’s transparency and data integrity [1]. A 2025 trilateral memorandum between Uzbekistan’s IT Park, Kazakhstan’s Astana Hub, and China’s Growth Vision Pro Ltd. is fostering startup ecosystems and regional capital flows [4]. Additionally, Uzbekistan’s digital customs systems and e-commerce platforms are part of broader efforts to integrate with the SCO’s multipolar digital economy [1].

Geopolitical Implications and Investment Opportunities

The SCO’s blockchain strategy is not just economic—it’s geopolitical. By 2035, the organization aims to control 15% of global digital trade, bypassing Western financial systems and reshaping power dynamics [1]. For investors, this means opportunities in:
- Cross-border payment platforms (e.g., Thunes and Ripple’s blockchain collaborations [3]).
- Green tech projects (e.g., Uzbekistan’s Zarafshan wind project [4]).
- Digital infrastructure (e.g., Pakistan’s DPI and CPEC logistics [1]).

Conclusion

The SCO’s 2035 Blockchain Strategy is a masterstroke in building a multipolar digital economy. China’s technological leadership, Pakistan’s strategic pivots, and Uzbekistan’s innovation hubs are creating a fertile ground for investment. As the world watches, the SCO is not just building infrastructure—it’s building a new order.

**Source:[1] SCO's 2035 Blockchain Strategy and Its Implications for Emerging Markets [https://www.ainvest.com/news/sco-2035-blockchain-strategy-implications-emerging-markets-tech-investment-2509/][2] Pakistan Announces Plans for National Bitcoin Strategic Reserve [https://www.blockhead.co/2025/05/29/pakistan-announces-plans-for-national-bitcoin-strategic-reserve/][3] China's Changing Approach to Digital Trade [https://www.cigionline.org/articles/chinas-changing-approach-to-digital-trade/][4] China Blockchain Service Market Size, Share Report [https://www.marketresearchfuture.com/reports/china-blockchain-service-market-62493][5] Pakistan's Digital Public Infrastructure (DPI) Initiative [http://www.riazhaq.com/2024/07/pakistans-digital-public-infrastructure.html]