China's blockchain services network BSN has created the first non-crypto NFT platform in the country, where all crypto-asset activity was recently banned.
China is definitely moving away from cryptocurrencies and creating its own platform for minting non-fungible tokens (NFT) unrelated to these digital assets. The news God to know the South China Morning Post (SCMP), indicating that the Asian giant will allow companies in the country to mint and manage their own NFTs without depending on the cryptocurrencies, , as is commonly the case with this type of asset.
The country is using its blockchain services platform, the Blockchain Services Network (BSN), to build the new NFT platform, called “BSN-Distributed Digital Certificates (BSN-DDC)”. According to the report, this new non-fungible token platform will offer a “one-stop, diverse, transparent and reliable shop” for companies to create and manage their own NFTs, without fear of breaking the law.
As reported by this outlet, China began banning all cryptocurrency-related activity from mid-2021, citing environmental issues and risks to the country's financial stability. Given the restrictions, using crypto assets in any form is illegal in China, including NFTs based on cryptocurrencies. block chains decentralized cryptocurrencies such as that of Ethereum.
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NFT Situation in China
According to the SCMP report, NFTs, as such, are not illegal within China. The country's regulators have noted that this type of digital asset can facilitate money laundering and illicit behavior, when linked to decentralized blockchain networks and cryptocurrencies. However, China has not banned their creation and use as long as they are on centralized blockchains, from where it can exercise complete control.
He Yifan, BSN's technical support executive director, clarified that public blockchains, which are decentralized platforms, are illegal in the country. Therefore, from centralized blockchains, such as BSN, where the identity of the owners can be fully verified and where regulators can intervene in case of illegal use, it is possible to create NFTs.
Non-Crypto NFT Use Cases
One of the use cases that the BSN envisions for non-cryptographic NFTs is credential management. The BSC explained that the license plates of its citizens' cars can be managed through non-fungible tokens. In this way, the car owner, the insurance company and the government will be able to have complete and controlled access to specific car data, such as mileage, engine serial number, repair history, among others.
To date, technology giants such as Ant Group, Tencent Holdings, JD.com, Alibaba Group Holding y Baidu, as well as other companies, such as the subsidiary of McDonald's in China and the news agency Xinhua, have minted their own NFTs, labeling them as “digital collectibles”, to reward its users.
BSN-DDC: Public launch at the end of March
The Blockchain Services Network has already launched a pilot of the new China-backed NFT platform, which can only be accessed by a select group of companies. The chain is currently minting NFTs to test the operation and performance of its token management and minting systems. However, the official launch of this digital platform, which can only be used by Chinese citizens, is scheduled for the end of March, the BSN reported.
Within the new platform, NFTs will be minted using fiat currency, while fees will remain around $0,7 to be accessible to everyone. According to this, the SCMP comments that in order to be profitable, more than 10 million NFTs will need to be minted.
With this initiative, China continues to join forces to become a global blockchain leader. The Asian power also wants to be the first in the world to launch its own digital currency. CBDC, the digital yuan, which is expected next month.
Continue reading: China gets ready for the final race towards the digital yuan and its BSN blockchain services network
