In China, a government-backed services network is constructing NFTs infrastructure

In China, a government-backed services network is constructing NFTs infrastructure
In China, a government-backed services network is constructing NFTs infrastructure/courtesy of Faceb...

Chinese government favored Non-fungible tokens (NFTs) over cryptocurrencies.

 

According to the South China Morning Post, Hong Kong-based news organization China’s government-backed blockchain-based services network Blockchain Services Network (BSN) is planning to deploy a new NFT infrastructure later this month.

 

The most important fact is that the infrastructure and cryptocurrencies are not connected.

 

China wants to have complete control over its market.

 

China remains unwavering in its opposition to digital currencies, but officials have given NFTs the go-light as long as they are not tied to cryptocurrencies.

 

Despite Beijing’s ban on cryptocurrencies, He Yifan, CEO of Red Date Technology, the technical provider team behind BSN, claims that NFT will have no legal concerns in China as long as it stays away from cryptocurrencies like Bitcoin.

 

The sole currency allowed for NFTs services and transactions is the Chinese Yuan.

 

The new infrastructure, codenamed BSN-Distributed Digital Certificate (BSN-DDC), would let businesses or individuals build their user portal or application for NFT management via an application programming interface.

 

He is upbeat about the future of NFTs in China, forecasting that annual NFTs production would be in the billions.

 

For central planners, it’s a hopeless

NFTs have recently appeared on public blockchains, allowing for the creation of one-of-a-kind digital things that can be owned, bought, and transferred without the use of a central authority.

 

While the underlying technology of NFTs is similar to that of cryptocurrencies, they are not intended to be used as a form of currency or a store of value.

 

On the other hand, public chains are banned in China due to their open-source character. In addition, the country expects user identification verification in all online services and regulatory engagement in the event of criminal behavior.

 

BSN, the underlying foundation of the NFT initiative backed by China Mobile, China UnionPay, and the state-owned State Information Center, has localized more than 20 public chains since its original release in 2018.

 

It’s all a joke with the Digital Yuan

According to Bank of China officials, the decentralization and anonymity of NFTs and the metaverse make them a potential weapon for lawbreakers.

 

Virtual assets are widely used in illegal transactions such as extortion, drug trafficking, gambling, money laundering, terror activities, evasion, and cross-border money transfers. Gou Wenjun, director of the Central Bank of China’s Anti-Money Laundering Monitoring and Analysis Center, stated publicly in December 2021.

 

Although China has cracked down on the mining and trade of cryptocurrencies like Bitcoin, the NFT and metaverse remain active in the gray zone.

 

Even though there are no legal restrictions on NFTs, prominent IT companies have taken safeguards for the publication of NFT projects. They refer to “digital collections” rather than “NFTs” for regulatory compliance reasons.

 

Where has Jack Ma gone?

Ant Group, Alibaba Group Holding’s financial technology (fintech) unit, and Tencent Holdings were the first Chinese tech behemoths to embrace NFT, with a diverse range of products.

 

JD.com and Baidu were the next companies to jump on board, releasing their digital collections.

 

The BSN-DDC architecture has the potential to transform the existing NFT market completely. It has approximately 20 partners, including Cosmos, a blockchain network, Baiwang, a manufacturer of digital receipt systems, and Sumavision, a video technology service provider.

 

He said BSN-DDC is cross-chain compatible and less expensive than existing single-company systems, with NFT issuance costing as little as 0.05 yuan. If the initiative contributes to 10 million NFTs, it is expected to be profitable this year.

 

According to He, red Date and all DDC project participants aim to create a network that is as transparent as possible while being compatible with Chinese norms and laws.

 

All gas fees on the BSN-DDC network will be paid in fiat money.

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About Robert Oluoch

My focus is economic, politics, entertainment and gaming reviews. My aim is to depict the complication of life through the combination of words and creativity.

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