China Fosters NFT & Decentralised Application

In a recent document release, China's Ministry of Industry and Information Technology has expressed its commitment to fostering the growth of non-fungible tokens (NFTs) and decentralized applications.

This marks a continued embrace of blockchain technology despite the prevailing cryptocurrency ban.

The central government, Johnny Ng, a member of the CPPCC National Committee, said in the document:

"The emphasis will be on key areas such as governance and industry, with encouragement for the exploration of new business models like NFTs and decentralized applications, expediting innovative applications and the construction of a digital ecosystem for Web 3.0,"

This initiative underscores the encouragement for innovative applications and the establishment of a digital ecosystem for Web 3.0.

The Ministry disclosed plans to initiate pilots related to distributed digital identity, aiming to delve into Web3 digital identity authentication and management.

Metaverse Industry Growth

Notably, this move follows earlier commitments by various local governments to develop the metaverse industry, with Sichuan province pledging to grow its metaverse sector to a market size of 250 billion yuan ($35.1 billion) by 2025.

Navigating Regulatory Challenges

Despite the mainland crypto trading ban in September 2021, China has persisted in trading home-grown NFTs, navigating a regulatory gray area.

Recently, the state-backed Blockchain-based Service Network China launched a national-level real-name decentralised identifier system, known as China RealDID, in collaboration with the Ministry of Public Security research institute.

Described as an extension of Anicert's Cyber Trusted Identity, China RealDID allows users to register or log into commercial websites using their decentralised identifier (DID) addresses and private keys.

The system's launch is deemed a bold step in personal data protection, showcasing China's advancements in blockchain technology, particularly in pioneering real-name decentralised identifiers within the Web3 domain.