On January 1, China intends to open its first government-sponsored NFT market.
Important Takeaway
China is establishing an NFT market.
China Technology Exchange, a state-sponsored organization, created the platform.
It now appears improbable that the Chinese NFT market will be able to communicate with decentralized blockchains.
Following up on its CBDC initiatives, China is developing a state-sponsored NFT market that will allow the exchange of digital collections and copyrights on a blockchain known as the China Cultural Security Chain.
The China Daily reports that the Chinese government intends to open the first state-sponsored NFT market in the country.
A debut event for the “China Digital Asset Trading Platform,” as it was referred to in the report, is planned for January 1 in Beijing. The Chinese Technology Exchange, a national technical organization founded by the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing Municipal People’s Government, contributed to the platform’s construction in part.
The NFT marketplace is anticipated to make it possible to deal in digital collections, copyrights, and intellectual property. The platform reportedly will make use of a blockchain known as the China Cultural Security Chain, but it will continue to rely on trading tools and settlement systems offered by the government-backed China Technology Exchange.
The NFT marketplace will allow for the secondary trade of digital assets, but few other details are known about it. The China Cultural Security Chain is quite likely to be centralized, which means that, unlike Ethereum or a number of other blockchains, all NFTs enabled by the chain will belong to the entity in control of it rather than to individual users.
Additionally, the article made no mention of the China Cultural Security Chain’s compatibility with other blockchains. It is doubtful that non-Chinese NFTs would ever receive support from the state-run market given the Chinese government’s present hostile stance towards decentralized cryptocurrencies (the country clamped down on bitcoin and crypto-related activity in 2021).
