The Chinese government has said that it wants to make its own “non-fungible token (NFT)” marketplace. But Beijing will not be running its platform on the blockchain. They want Crypto to replace as fiat as the market’s Currency.
The Hangzhou Internet Court ruled last month that virtual items like NFTs can be considered property. The China Daily said Beijing would open the China Digital Asset Trading Platform (literal translation).
The government says that the platform will be live on January 1. Beijing says it will become an official “secondary market for digital assets that follow national rules.” China has made it very hard to trade in cryptocurrencies.
Because of this, trading NFTs is nearly difficult. NFTs manufacture blockchain networks worldwide and sell for Ethereum (ETH).
Also Read: What Are NFT Royalties?
The Chinese government is ready to put all crypto assets on the back burner. At the same time, it wants to pick and choose which crypto and blockchain-related technological advances to use. This picture includes private blockchain networks and non-fungible tokens (NFTs).
‘Digital Collectibles’ – China’s Take on NFT
Chinese enterprises must name their items “digital collectables” instead of NFTs. Restrictions on secondary market trading prohibit “speculation” on NFT prices.
Private Chinese markets for “digital collectibles” use the yuan instead of crypto assets. “Centralized ledgers” record marketplace transactions instead than the public blockchain.
Tech giants like Alibaba and Tencent have already released their own non-cryptocurrency-based NFTs. They also run their marketplaces, which are heavily regulated.
But Beijing will show up for the first time with the China Digital Asset Trading Platform.
The government said that the NFT marketplace will be in charge of “putting into action” China’s plans to “digitize culture” and “develop cultural projects and industries through technical assistance and innovation.”
The state-run China Technology Exchange, in charge of intellectual property rights and IT issues, will run the platform. The China Cultural Relics Exchange Center will also be a part of the project. This group takes care of things related to Chinese culture.
The platform also uses a Beijing-based private entity that facilitates intellectual property and “digital collectibles” trades.