Despite Crypto Ban, China Insists on Enhancing NFTs and DApps
China, despite its ban on cryptocurrency, is signaling a keen interest in developing non-fungible tokens (NFTs) and decentralized applications (DApps) as part of its broader blockchain technology integration plan.
The Ministry of Industry and Information Technology released a document on Tuesday, outlining intentions to pave the path for Web3 development, focusing on governance, industry, and innovative business models like NFTs and DApps.
This proactive approach by the central government, responding to inquiries from key political bodies, emphasizes the encouragement for exploring these new paradigms in digital spaces. The document intends to establish a strategic direction for Web3, highlighting initiatives like distributed digital identity pilots to facilitate authentication and management.
China’s pivot towards Web3 comes on the heels of several local governments pledging support for the metaverse industry earlier this year. Notably, Sichuan province, once a crypto mining hub, announced ambitions to grow its metaverse industry substantially by 2025, signaling a shift in focus post-crypto ban.
While crypto trading remains prohibited in China, the trading of domestically originated NFTs has persisted in a regulatory gray area, showcasing an evolving stance within the country’s blockchain landscape.
Adding to these advancements, China’s state-backed Blockchain-based Service Network (BSN) launched a real-name decentralized identifier system, supporting the Ministry of Public Security research institute. Dubbed “China RealDID,” it acts as a continuation of Anicert’s Cyber Trusted Identity, offering enhanced personal data protection.
This system enables users to register or log into commercial websites using their DID addresses and private keys, reinforcing China’s strides in securing personal data in the Web3 domain.
China’s move, despite the ban on cryptocurrencies, underscores its notable progress in blockchain technology. The introduction of the Real-Name Decentralized Identifier in the Web3 domain signifies a bold step forward, exemplifying the country’s commitment to pioneering innovative solutions within the evolving blockchain landscape.
