China’s crypto laws will ban decentralization, but that doesn’t mean they don’t need an NFT ecosystem. Most of us thought that China’s negative stance towards cryptocurrencies would extend to NFTs as well. Surprisingly, they see their potential and want to develop them.
What is it about?
China’s state-backed Blockchain Services Network (BSN) aims to launch infrastructure to support NFT creation and trading. Despite China’s unexpected support, its stance on cryptocurrencies will not change. China has previously taken a hard line on cryptocurrencies, banning bitcoin mining across the country. In fact, the regulation of cryptocurrencies in China did not end there, as they came down on illegal cryptocurrency miners who refused to stop. Obviously, the introduction of NFTs may not be easy for such an anti-crypto country. Therefore, all NFT marketplaces launching in China will only support RMB to pay for purchases and transactions.
Reason Why China’s Crypto Laws Will Support NFTs
It’s no secret that NFTs generate large amounts of money for creators and investors. China does not want to miss out on the significant revenue they could bring in the future. They believe that the technology behind NFTs has many applications that are not yet explored by everyone else. That is why they will provide individuals and companies with a platform to create and experiment.
Unexplored applications of NFTs
We all already know the impact NFTs have had on the arts and gaming, but China believes there are more compelling use cases. According to He Yifan, CEO of Red Date Technology, certificate management is one of the most practical applications of this technology. This is not the first time the potential of NFTs in this area has been discussed, but this may be the first time it has come to fruition.