China launches crypto-free NFT platform

China bans cryptocurrencies. Only centralized e-yuan is tolerated. Nevertheless, China would like to release its own NFT platform, completely without cryptocurrencies.

China bans cryptocurrencies

Since September, all transactions involving cryptocurrencies are prohibited in China. This ban amounts to a complete de facto ban on cryptos.

Due to their decentralized, hard-to-control characteristics, cryptocurrencies can of course still be used. Under these circumstances, however, no cryptocurrency will be widely used as a means of daily payment.

The Chinese government regards cryptocurrencies as a subversive element and therefore strictly rejects them. Instead, the People’s Bank of China has developed a CBDC. It is easy to monitor and regulate.

The Chinese government had previously fought Bitcoin mining, which is hugely popular in the country, and even cut off power to large mining farms. This all happened at a time when a good 60% of all miners were from China.

This development has caused hysteria among some Bitcoiners. For the network, the measures taken by the Chinese government have been a blow. However, after a brief dip, the network came back stronger than ever.

China Blockchain Services Network (BSN)

NFTs are extremely popular in Southeast Asia. We recently reported on developments in South Korea. There is a race between major electronics manufacturers in the battle for NFTs. LG and Samsung want to display digital art natively on their devices first.

Why all the fuss over NFTs? We explain it to you in this video!

A new report from the South China Morning Post suggests that the Chinese are also passionate about digital art. Apparently so much so that the Chinese government feels the need to design its own product to meet the demand for NFT.

As a result, China manufactures the Blockchain service network. It is a non-public blockchain on which digital art is exchanged in the manner of NFTs.

Do NFTs really work on BSN?

On the one hand, general manager He Yifan, who is involved in the development of Red Date Technology, describes the new project as a competitor for NFT markets. On the other hand, he recalls that crypto-currencies are prohibited in China.

As a result, cryptos cannot play an otherwise usual role in NFT trading. China calls its own distributed digital certificates NFT, DDC for short. Only the Chinese yuan serves as the underlying currency. Therefore, said He Yifan, these DDCs also have no legal problem.

By providing SDKs, independent developers have the ability to implement the existing framework into their own products.

Another problem is that of the so-called public blockchain. What seems questionable at first becomes clear from Yifan’s explanation. Each participant can easily use the blockchain of a common cryptocurrency.

Although there is a certain prerequisite, like having a credit balance, to complete a transaction, nothing else is required. It’s different in China. To participate in a blockchain, the user must first be identified. As a result, blockchains licensed in China are no longer publicly available.

NFTs in China represent a turnover of one billion dollars

Of course, such measures also have an impact on the willingness of users to participate in the process. Developers have long aligned their programs and websites with the path of least resistance so as not to confront their users with obstacles.

Still, these so-called Chinese NFTs are a billion-dollar upcoming business, Yifan says.

Billions will flow from it each year in the future.

Chinese users are now used to mechanisms such as pre-identification. According to Yifan, all systems on the Internet are subject to such regulations.

What is particularly interesting in the field of business is not even the art, but much more the digital certificates held as NFTs or in a similar form. He mentions vehicle license plates and school report cards as examples.

For example, a license plate can be created as an NFT. Specific users are then assigned to the NFT in specific groups. This affects the owner, the authorities, the insurance and the mechanic. All stakeholders then have specific access rights and can consult the mileage, serial numbers or damage history.

The project, to which Yifan refers with the double abbreviation BSN-DDC, is intended to support ten other blockchains in adapted version, including Ethereum. What that means in plain language remains unclear at this time.