According to the South China Morning Post, China’s state-backed Blockchain Services Network (BSN) is scheduled to build new infrastructure to accommodate non-fungible tokens, kicking off a Chinese NFT market that is unrelated to cryptocurrencies.
The announcement demonstrates Beijing’s interest in the NFT boom while attempting to balance it against its crypto transaction ban, which will take effect in 2021. The government-backed digital infrastructure will make a clear distinction between cryptocurrencies and non-fiat currencies, which will remain lawful.
Nonetheless, other tech businesses, including JD.com, Baidu, and Tencent Holdings, have chosen to refer to their NFTs as “digital collectibles.”
The BSN-Distributed Digital Certificate (BSN-DDC) is a new technology that will allow users to manage their NFTs while transacting all purchases and service fees in Chinese yuan.
In most cases, a blockchain is a decentralised platform for open market transactions and data. Public chains, on the other hand, are banned in China, according to He Yifan, CEO of BSN’s technological support provider Red Date Technology, who spoke to the South China Morning Post.
In fact, he added, the law mandates that all internet networks allow regulators to intervene in the event of “illegal conduct.”
The open permissioned chain, or a version of a blockchain that is managed by a single entity, is China’s alternative to this. China’s BSN is backed by China Mobile, China UnionPay, and the State Information Centre, all of which are state-owned companies. The BSN-DDC will incorporate ten blockchains, including modified Ethereum and Corda versions.
More significant firms and well-known personalities are entering the digital asset market. NFTs grew to a $41 billion business in 2021, approaching the scale of the worldwide fine art market.