China seems to be capitalizing on the booming NFT industry by building a state-backed blockchain infrastructure to support non-fungible tokens. However, the platform will have nothing to do with cryptocurrencies.
According to the South China Morning Post (SCMP), the state-backed blockchain deployment infrastructure platform Blockchain Services Network (BSN) will allow users to manage their NFTs, with all purchases and service fees to be transacted with the Chinese yuan.
The CEO of Red Date Technology, which gives technical support to BSN, He Yifan, assured that NFTs ‘have no legal issue’ within China and are free from legal troubles as long as they do not have anything to do with cryptocurrencies.
He said that the infrastructure would utilize an open, permissioned blockchain to enable an on-chain governing body. Yifan explained as public chains are not allowed to operate in China, Red Date volunteered towards building a low-cost infrastructure for a Chinese NFT industry.
The executive further added that the infrastructure platform will integrate 10 blockchain networks, including the adapted version of Ethereum, Corda, and Fisco Bcos initiated byWeBank, a Tencent-backed fintech. Ahead of its expected rollout by the end of January 2022, the infrastructure already attracted over 20 partners including video service provider Sumavision, Cosmos blockchain network, and digital receipt system maker Baiwang.
“We will provide services to NFT companies in Hong Kong, which means if there is any international business involving issuing NFTs inside China, they definitely can choose to use the BSN-DDC network via our Hong Kong gateway,” Yifan added.
Last year, Chinese tech firms including Alibaba and Tencent launched ‘digital collectibles’ but used the term collectibles instead of NFTs for compliance reasons. Similarly, JD.com also has launched a blockchain-backed platform to sell digital collectibles. Its Lingxi platform and an initial batch of NFTs inspired by JD.com’s mascot Joy were launched with at least 2,000 pieces with each of its five mascots being sold out.