China to launch state-governed NFT marketplace

China to launch state-governed NFT marketplace

China has announced the launch of a state-governed NFT marketplace, dubbed ‘China Digital Asset Trading Platform.’ The project hints at China taking a pro-NFT stance despite having banned cryptocurrencies in 2021.

China debuts the first state-governed marketplace

China is well known for being one of the most anti-crypto countries on this planet. Despite the previous animosity, the nation has revealed its interest in allowing the Non-Fungible Token (NFT) industry to have a place in the country. According to recent reports, the country has plans to launch an NFT marketplace

The country has reportedly developed a government-controlled blockchain dubbed China Cultural Protection Chain, a clear indication of the country’s efforts to have as much control as possible in the introduction of web3 into Chinese.

Although the marketplace will allow the use of digital currencies to power transactions, Bitcoin and Ethereum will not be among the options, hinting at the use of China’s Central Bank Digital Currency (CBDC). As the new year begins, Beijing plans to hold a ceremony debuting the marketplace. The China Technology Exchange, China Cultural Relics Exchange Center Cultural, and private company Huaban Digital Copyright Service Center will finance the event.

The marketplace will open up the Metaverse to users by allowing collectors to trade tokenized items that improve user experience in the Web3 space. Users can buy and sell digital copyrights of physical items, property rights, and exclusive digital art pieces. 

The Chinese government is promoting good moves to virtual power experiences. The marketplace seems to be a good step towards integrating the NFT industry within the country.

BSN technology will impact the Chinese NFT Marketplace

The Chinese government has been in the foreground to support blockchain technology within its jurisdiction. In May last year, CNBC reported that the country has secretly been developing independent core technologies on the blockchain network. For instance, the nation has been working on a Blockchain-based Service Network (BSN) to revolutionize technology for minute enterprises. The ‘China Digital Asset Marketplace’ will run on the BSN network. The blockchain service and the new NFT marketplace will likely be more interoperable, allowing users to maximize their virtual experiences easily.

BSN comes as an alternative to decentralized digital assets, following China’s ban on cryptocurrencies. Jehan Chu, the managing partner at Hong Kong-based Kenetic, told CNBC that BNS would also be a building platform for governments. He also implied that while using the platform, governments and commercial-oriented entities will not require cryptocurrencies to reinforce the blockchain platforms on their infrastructure. He stated:

“This is where non-crypto use cases come in, and BSN offers a compelling infrastructure,”

Without crypto assets on the NFT marketplace, it will be difficult to conduct transactions that involve exchanging items for collateral outside of the country. As previously mentioned, this may signal the introduction of CBDC, which will offer a comprehensive use case on the platform to replace crypto payment methods through their utility. 

Follow Us on Google News