China’s BSN wants to launch a state-backed NFT platform following the crypto crackdown and the launch of its digital yuan project so let’s see in today’s blockchain news why is this so important.
China’s BSN wants to launch a state-backed NFT platform and it is preparing the infrastructure for digital collectibles. The network will be incompatible with external NFTs and will not accept crypto payments. China came out against crypto time and again over the years ramping up the efforts when it cracked down on Bitcoin mining. The new report from the country suggests that china will debut its own-state backed platform for launching the tokenized digital collectibles but it will be crypto-less.
The South China Morning Post reported that the state-backed Blockchain Services Network is preparing a permissioned and non-public blockchain infrastructure that will enable the release of the NFT-style collectibles by being monitored by the governemnt. According to the reports, the platform will not be interoperable with NFTs crated on the public blockchain network like Solana and Ethereum and will not accept crypto payments but the private network will accept only the Chinese yuan to pay for the platform fees and collectibles.
BSN will use the term Distributed Digital Certificate to refer to the unique brand of the state-backed NFTs with the platform due to the launch at the end of the month. The CEO of Red Date Technology He Yifan which is one of the tech companies behind the BSN said that these collectibles have no legal issue in China so long as they are not related to crypto and added that the public blockchains are illegal in China because to government regulations. The BSN created permissioned versions of the existing blockchain networks for corporate use and will integrate 10 of them in the NFT platform including a version of Ethereum and Corda.
The company also enlisted 20 partners for the upcoming launch including Cosmos, Baiwang, and Sumavision. The NFT acts like a deed of ownership for a digital item like an image or a video clip and the NFT market generated $23 billion in trading volume over the course of 2021 as per the data from DappRadar which is up by $100 million in 2020. Given the Chinese Government’s stance on crypto, it doesn’t come as a surprise that companies in the country played it safe on NFTs so far. In a separate report, the South China Morning Post explained that the rising demand for NFTs in China companies started to call them digital collectibles and avoid the NFT branding. The companies that sell tokenized digital collectibles can’t allow them to be resold because of the government’s fears of speculation and money laundering.
The government also reported a plan to keep the NFT market under the eye via the use of permissioned blockchain technology rings true given its stance on crypto. This approach, it provides citizens access to crypto that they can own and use but it avoids the frenzy that erupted with the NFTs.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]