Despite its hard-line stance when it comes to cryptocurrencies, global powerhouse, China, still has designs on the blockchain. In order to separate the underlying technology from its association with crypto it is building its own state-run blockchain for NFTs.
Under the banner of “Blockchain Services Network (BSN),” Beijing aims to capitalize on the popularity of NFTs, while at the same time disconnecting it from the currencies that surround it. The result is the BSN DDC, or Blockchain Services Network Distributed Digital Certificate. In addition, BSN will integrate services from 10 major blockchains including Ethereum and Corda, but will not operate on a decentralized framework, therefore allowing government access to the data, creating a distribution system that is closely monitored by Chinese authorities.
China’s solution will conduct all payments and transaction fees related to BSN using Renminbi, the standard Chinese currency. However, China already enjoys a vast digital payment infrastructure, optimized to facilitate it. Several major Chinese tech companies have backed the move, including Tencent, JD.com and Baidu, all of which have recently launched NFT collections under the name “digital collectible.”
The downside of this operation is that while utilizing different rules from the rest of the world, the Chinese NFT market is likely to become isolated. Therefore, reducing NFT engagement between it and other nations.