China Supports NFT and DApp Development Despite Crypto Ban
China is pushing forward with the development of non-fungible tokens (NFTs) and decentralized applications (DApps) as part of its continued embrace of blockchain technology, despite its ban on cryptocurrencies. The Ministry of Industry and Information Technology announced plans to create strategy documents that will outline the development path for web3.
In response to inquiries from Johnny Ng, a member of the CPPCC National Committee, the government stated that it will focus on key areas such as governance and industry, encouraging the exploration of new business models like NFTs and DApps. The goal is to accelerate innovation and establish a digital ecosystem for Web 3.0.
The ministry also revealed plans to launch pilots related to distributed digital identity, aiming to explore web3 digital identity authentication and management.
Local Government Support for Metaverse Industry
This recent push by the central government follows earlier commitments made by local governments to develop the metaverse industry. Sichuan province, once a major crypto mining hub before the mining ban, pledged in August to grow its metaverse industry to reach a market size of 250 billion yuan ($35.1 billion) by 2025.
Crypto Trading Ban But NFTs Persist
While crypto trading has been banned in China since September 2021, the trading of domestically created NFTs has continued in a regulatory gray area.
Real-Name Decentralized Identifier System
In support of the Ministry of Public Security research institute, China’s state-backed Blockchain-based Service Network recently launched a national-level real-name decentralized identifier system called China RealDID. This system is seen as an extension of Anicert’s Cyber Trusted Identity and is considered a significant step in personal data protection. Users can register or log into commercial websites using their DID addresses and private keys.
China’s Progress in Blockchain Technology
Despite the ban on cryptocurrencies, China’s progress in blockchain technology is noteworthy. The country is at the forefront of developing the Real-Name Decentralized Identifier for the Web3 domain, according to BSN, the developer of China’s national blockchain infrastructure.
Hot Take: China Supports NFTs and DApps to Foster Web3 Development
China’s Ministry of Industry and Information Technology has announced its intention to encourage the development of non-fungible tokens (NFTs) and decentralized applications (DApps) as part of its embrace of blockchain technology. Despite the ban on cryptocurrency trading, China recognizes the potential of NFTs and DApps in fostering innovation and constructing a digital ecosystem for Web 3.0. Local governments, such as Sichuan province, have also pledged support for the metaverse industry. Furthermore, China has launched a real-name decentralized identifier system called China RealDID, which is viewed as a significant step in personal data protection. China’s progress in blockchain technology remains notable despite its ban on cryptocurrencies.
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