China is following the crypto crackdown and reportedly keeping a close eye on digital collectibles via authorized blockchain infrastructure.
China’s state-backed Blockchain Services Network is currently preparing infrastructure for NFT-like digital collectibles. Further, the network will allegedly be incompatible with external NFTs. In short, they will not accept cryptocurrency payments!
Furthermore, China has famously come out against cryptocurrency time and (time) again over the years. This state is constantly and gradually increasing its efforts from when they’ve stopped Bitcoin Mining.
Though, what about the NFT’s?
According to one of the new reports, China will debut its own state-backed platform for launching tokenized digital collectibles.
China State-Backed Blockchain Services
This week, the South China Morning Post reports that the State-backed Blockchain Services Network (BSN) is preparing a non-public blockchain.
According to this report, the platform will not be compatible with NFTs created on public blockchain networks such as Solana and Ethereum. In fact, the payments will not be in the cryptos. Rather, this private network will accept the Chinese Yuan exclusively to pay for collectibles and platform fees.
BSN will use the term Distributed Digital Certificate (DDC) to refer to its unique brand of state-backed NFTs as per the report.
The firm has reportedly registered 20 partners for the upcoming launch. The upcoming launch included blockchain network Cosmos, cloud invoicing provider Baiwang, and broadcasting solutions firm Subdivision.
Given the Chinese government’s stance on cryptocurrency, it’s no surprise that companies in the country have played it safe on NFTs thus far.
According to a separate report this week by the South China Morning, they have written amid rising demand for NFTs in China companies, Chinese companies are mainly avoiding the NFT branding.
To end, Chinese firms are showering the investments into the metaverse even though there are warnings from the state-owned media. Further, the government’s stance towards NFTs could ultimately inform its view towards the metaverse to come—and generate another walled garden as a result.