China has decided to invest its efforts in creating a state-owned network of non-fungible tokens (NFT). According to the South China Morning Post, Blockchain Services Network (BSN) plans to launch an infrastructure supporting NFTs later in January.
BSN is a blockchain network created and controlled by the Chinese government. However, NFTs are not legally authorized to be issued in China. That is why the issuance of these tokens will occur without any relation to cryptocurrencies.
He Yifan, chief executive of Red Date Technology, which provides technical support to BSN, confirmed the information. According to He, there is no impediment to issuing NFTs in China, as long as they have nothing to do with cryptocurrencies.
Structure will issue certificates
The difference between the Chinese service and traditional NFTs is already in the name. The project will be called BSN-Distributed Digital Certificate (BSN-DDC). That is, the term Distributed Digital Certificate aims to unlink the network from names such as NFT, blockchain and others associated with cryptocurrencies.
DDC provides application programming interfaces for companies or individuals. In this way, it allows them to create their own applications to manage NFTs.
In addition, the platform will allow these entities to trade the tokens generated in the DDC. But in this case, only Chinese yuan can be used for purchases and service fees. BSN did not reveal whether the digital version of the Chinese currency will also be accepted.
Although China sets restrictions on the use of cryptocurrencies and NFTs, the country recognizes the potential of both technologies. The digital yuan is proof of China’s foray into cryptocurrencies, while the DDC seeks to capture a slice of the latter.
For the CEO of Red Date, NFTs will be widely used in China in the next five years. “NFTs in China will see annual production run into the billions in the future“, He said in an interview.
However, the government does not want the technology to be associated with cryptocurrencies or decentralized blockchains. The country has closed a massive siege banning cryptocurrency trading and BTC (BTC) mining, but wants to be at the forefront of areas like NFT and Metaverse.