China has been an interesting topic of conversation in the metaverse as of late, and for good reason. The country has flip flopped quite a bit when it comes to regulation of NFTs, cryptocurrencies, and other crypto assets.
However, some clarity is starting to fill the conversation after reports that a China-backed network is expected to introduce infrastructure to support NFTs. Here’s what’s going on:
Blockchain Services Network to Support NFTs in China
As mentioned above, NFTs have been a hot topic of conversation in China, and for good reason. The country’s government has decided to ban cryptocurrencies, which makes owning NFTs a difficult concept.
However, that’s all going to change.
According to various reports, China-backed Blockchain Services Network will introduce infrastructure to support NFTs that have no link to cryptocurrencies. It is expected that the infrastructure will be introduced by the end of the month.
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According to He Yifan, CEO at Red Date Technology, a company that provides technical support to Blockchain Services Network, NFTs have no legal issues in China. The legal problems have to do with the tokenized economy surrounding most NFT projects as cryptocurrencies are banned in the region.
On the coming platform, businesses and individuals will be able to build their own user portals and apps to manage NFTs. However, unlike currently available options, no cryptocurrencies will be accepted on the platform. Instead, the Chinese yuan will be the only form of payment for both purchases and service fees.
Plans on Track
It seems as though the plans to launch the infrastructure remain on track. In fact the first we heard about the news was an update from Red Date Technology, the company behind Blockchain Services Network. That update came in October, suggesting that infrastructure for the purchase and management of NFTs would be available by the end of January.
At the time, the CEO of Red Date Technology made a major prediction. He said that NFTs will be widely used in China over the next five years. However, for that to happen, the platform will have to steer very clear of cryptocurrencies. The Chinese government has no interest in supporting any technology associated with cryptocurrency or that runs on public permissionless chains.
The Bottom Line
The bottom line here is simple. Though China doesn’t want its consumers having anything to do with cryptocurrency because allowing the tech relinquishes the regime of control, NFTs are becoming such a valuable asset that the country is allowing its consumers to own them. That’s yet another feather in the cap for the NFT industry and all who support it!