May 29, 2024
China Charts a Web3 Future: Embracing NFTs and DApps Amidst Crypto Ban
NFT

China Charts a Web3 Future: Embracing NFTs and DApps Amidst Crypto Ban

In a surprising move, China has announced its intention to foster the growth of non-fungible tokens (NFTs) and decentralized applications (DApps) as part of its ongoing embrace of blockchain technology. This comes despite the country’s cryptocurrency trading ban implemented in September 2021. The Ministry of Industry and Information Technology revealed its plans in a document released on Tuesday, outlining the formulation of strategy documents to guide the development path of web3.

The central government’s document highlighted the focus on key areas such as governance and industry, signalling encouragement for the exploration of new business models like NFTs and DApps. The objective is to expedite innovative applications and construct a digital ecosystem for Web 3.0, according to the document, which was prepared in response to inquiries from Jonny Ng, a member of the CPPCC National Committee, China’s top political advisory body.

A notable aspect of the strategy involves the exploration of distributed digital identity through pilot programs. The Ministry of Industry and Information Technology aims to delve into web3 digital identity authentication and management, reflecting a commitment to advancing blockchain technology beyond its current applications.

This recent push towards web3 development by the central government follows similar initiatives by local governments earlier this year. Sichuan, a province in southwestern China that was once a prominent crypto mining hub before the national mining ban, declared in August its ambition to grow the metaverse industry with a target market size of 250 billion yuan ($35.1 billion) by 2025.

Despite the ban on crypto trading, the trading of domestically produced NFTs continued, albeit in a regulatory grey area. The government’s latest move suggests a nuanced approach, recognizing the potential of blockchain technology while maintaining control over cryptocurrency trading.

In a notable development, the state-backed Blockchain-based Service Network China recently launched a national-level real-name decentralized identifier system. The initiative is in collaboration with the country’s Ministry of Public Security research institute. The system, known as “China RealDID,” is considered an extension of Anicert’s Cyber Trusted Identity, offering enhanced personal data protection.

BSN, the developer of China’s national blockchain infrastructure, acknowledged China’s progress in blockchain technology despite the cryptocurrency ban. The Real-Name Decentralized Identifier system marks a significant step in aligning China with the principles of Web3, allowing users to register or log into commercial websites using their DID addresses and private keys.

China’s proactive stance towards web3 development, evident in its strategic initiatives and national-level projects, showcases the country’s commitment to harnessing the potential of blockchain technology, even as it navigates the complexities of cryptocurrency regulation.

Image: Wallpapers.com

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