China Is Creating Its Own NFT Industry With State-Backed Blockchain
China will soon have its very own NFT industry in a state where cryptocurrencies are banned.
State-backed Blockchain Services Network (BSN) will roll out the NFT infrastructure at the end of January. Titled the ‘BSN-Distributed Digital Certificate (BSN-DDC)’, the infrastructure differentiates itself from NFTs transacted with crypto.
BSN-DDC will offer application programming interfaces for users to build their own portals and apps to manage NFTs. RMB is the only currency permitted for transactions.
Cryptocurrencies are banned in China but NFTs “have no legal issue in China” according to He Yifan, chief executive of Red Date Technology. Red Date Technology offers technical support to BSN.
“NFTs in China will see annual output in the billions in the future,” He said in an interview.
He explained that regular NFTs operate on public blockchains which “are illegal in China” because Beijing requires internet systems to verify user identities. Public blockchains are decentralised.
The solution is “the open permissioned chain”, which is an adapted version of blockchain that can be governed by a designated group.
BSN is backed by state-owned China Mobile, China UnionPay and State Information Centre. The platform has already “localised” over 20 public chains since 2018.
BSN-DDC will integrate 10 chains, adapting Ethereum and Corda, as well as Tencent’s WeBank backed Fisco Bcos.
Whilst the most popular use of NFTs is currently digital art, He said China will use it for certificate management including car licence plates and school diplomas.