China to launch its own state-backed NFT infrastructure

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China to launch its own state-backed NFT infrastructure

China is preparing to roll out its own state-backedBlockchain infrastructure to support the deployment of NFT-like collectibles, according to South China Morning PostChina Morning Post.

The infrastructure, known as the Blockchain Services Network-Distributed Digital Certificate BSN-DDC, won't be compatible with external NFTs, nor will it support cryptocurrencies payments.

China is trying to start and develop its own NFT industry that is not linked to the space.

The BSN-DDC will allow businesses and individuals to build apps and portals to manage tokenized collectibles. It won't support NFTs, and only Chinese yuan will be allowed for purchases and service fees.

The roll out is expected to take place at the end of the month and has already attracted more than 20 partners, including a digital receipt system maker Baiwang and a video technology service provider, Sumavision.

He Yifan, chief executive of Red Date Technology, said that NFTs in China have no legal issue as long as they distance themselves from cryptocurrencies.

Despite not being illegal, a number of Big Tech companies decided to call their NFT projects digital collectibles for compliance reasons.

Ant Group, an affiliate of Post owner Alibaba Group Holding and Tencent Holdings, was among the first tech giants in the country that hopped on the NFT bandwagon, while JD.com and Baidu followed with their own digital collectibles.

The state-owned media Xinhua News Agency gave away more than 100.000 digital collectibles for Christmas, giving them more than 100.000 digital collectibles.

The state requires all internet systems to verify user identities and allow the regulators to intervene in the event of illegal activities, according to Yifan, who said that the annual output of NFTs in China will be billions in the future. With this in mind, Red Date developed the open permissioned chain based on an adapted solution that can be governed by a designated group.

Since its launch in 2018, BSN, founded by Red Date, has already localized more than 20 public chains, along with state-owned China Mobile, China Union Pay and the State Information Centre.

According to Yifan, BSN-DDC will integrate 10 chains, including the adapted version of Ethereum and Corda, in addition to domestic ones, such as Fisco Bcos, initiated by Tencent-backed Fintech firm WeBank.

Yifan said that the project would make a profit this year if it can generate 10 million NFTs and that the actual output will surpass that based on our predictions, because of the fact that BSN-DDC is compatible across chains and is cheaper than other single-company platforms. Yifan predicts that there will be a lot of market for certificate management, such as car license plates and school degrees.