China launches encryption-free NFT platform

China bans cryptocurrencies. Only the central electronic yuan is tolerated. However, China wants to roll out its own NFT platform, completely without cryptocurrency.

China bans cryptocurrency

Since September, all transactions involving cryptocurrency have been banned in China. This ban amounts to a virtually complete ban on cryptocurrencies.

Due to its decentralized properties, which are difficult to monitor, cryptocurrencies can, of course, still be used. However, under these conditions, no cryptocurrency will ever achieve widespread use as an everyday payment method.

The Chinese government considers cryptocurrency to be subversive and therefore strongly rejects it. Instead, the People’s Bank of China has developed a central bank digital currency. It is easy to monitor and organize.

The Chinese government had previously fought against Bitcoin mining, which is very popular in the country, and even cut power to large mining farms. All this happened at a time when 60% of miners were from China.

This development caused some bitcoin hysteria. For the network, the actions of the Chinese government were a severe blow. However, after a short retreat, Grid came back stronger than ever.

The mining ban in China has left a profound impact on the Bitcoin hash rate. Now the network is stronger than ever.

China Blockchain Services Network (BSN)

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

What is all the fuss about NFTs? We explain it to you in this video!

A new report from the South China Morning Post indicates that the Chinese are also passionate about digital art. It seems to the point that the Chinese government feels the need to design its own product to meet the demand for NFTs.

Accordingly, China is manufacturing the Blockchain Services Network. This is the non-public blockchain in which digital art is traded in the style of NFTs.

Do NFTs already work on BSN?

On the one hand, Managing Director He Yifan, who is involved in developing Red Date Technology, describes the new project as a competitor to the NFT markets. On the other hand, he points out that cryptocurrencies are banned in China.

As a result, cryptocurrencies cannot play an otherwise familiar role in NFT trading. China calls its Distributed Digital Certificates NFTs, DDC for short. Only the Chinese yuan serves as the base currency. Therefore, He Yifan says, these centers also have no legal problem.

By providing software development kits, independent developers have the option to implement the existing framework into their own products.

Another problem is the so-called public blockchain, and what seems questionable at first is evidenced by Yifan’s explanation. Every participant can easily use the blockchain for a popular cryptocurrency.

Although there is a certain prerequisite prerequisite, such as having a credit balance, in order to make a transaction, nothing else is necessary. The situation is different in China. In order to participate in the blockchain, a user must first be identified. Accordingly, the blockchain allowed in China is no longer available to the public.

China’s NFTs are worth $1 billion

Of course, such measures also have an effect on the desire of users to participate in the process at all. Developers have long been aligning their software and websites with the path of least resistance so that they do not face obstacles for their users.

However, the so-called Chinese NFTs are an upcoming multibillion-dollar business, Yifan says.

Billions of this will flow in every year in the future.

Chinese users are now familiar with mechanisms such as preselection. According to Yifan, all online systems are subject to these regulations.

What is particularly interesting about business is not even art, but more digital certificates that are held as NFTs or in a similar format. He cites vehicle license plates and school reports as examples.

For example, a license plate can be created as an NFT. Then specific users are assigned to the NFT in specific groups. This affects the owner, authorities, insurance and mechanic. Everyone involved then has specific access rights and can see mileage, serial numbers or damage history.

The project, which Yifan refers to as the dual acronym BSN-DDC, aims to support ten other blockchains as a mod, including Ethereum. What that means in plain language is still unclear at the moment.

eToro Plus500 Libertex
eToro Plus500 Libertex
Minimum Deposit 200 EUR 100 EUR 100 EUR
Outlay 0.75 – 5% 0.52 – 6.11% min 0.001%
Crane up to 2:1 up to 2:1 up to 2:1
Regulation CySEC, FCA CySEC, FCA CySEC
More tools Stocks, commodities and foreign exchange ETF, Stocks, Forex, Commodities, Options, Indices ETF, Stocks, Forex, Commodities, Indices
user 780.000+ 320,000+ 2,200,000+
location Continue to eToro

Disclaimer: 68% of retail CFD accounts lose money. Shown and archived by eToro Germany GmbH. Your capital is at risk.

Follow Plus500

Disclaimer: 72% of CFD traders lose money.

Continue to Libertex

CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 75.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can take a high risk of losing your money

Leonard is a strong cryptocurrency enthusiast. As a friend of self-determination, he sees cryptocurrency as a valuable asset. He is particularly excited about secret cryptocurrencies.

Leave a Comment