China’s Ministry of Industry and Information Technology announced that the country plans to support the development of non-fungible tokens (NFTs) and decentralized applications (dApps) amid the widespread adoption of blockchain technology.
What Happened: The official document highlights that it will formulate strategy documents for further clarity on the development path of Web3. The proposal looks to improve top-level design, strengthen technical research and supervision, carry out international exchanges and cooperation, and increase technology publicity and promotion, The Block reports.
The Chinese government adds, “The emphasis will be on key areas such as governance and industry, with encouragement for the exploration of new business models like NFTs and decentralized applications, expediting innovative applications and the construction of a digital ecosystem for Web 3.0.”
The government is looking to promote application pilots related to distributed digital identity (DID) and explore institutional and individual Web 3.0 digital identity authentication and digital asset management systems, according to The Block. It also looks to establish data governance, and transaction circulation mechanisms and launch typical demonstration projects that can be replicated and promoted.
Also Read: China Is 'Throwing Gas On Raging Crypto Bull Market,' Former BitMEX CEO Says
Why Does It Matter: The step comes amid several local governments looking to develop the metaverse industry, as indicated in early 2023. While China banned crypto trading in September 2022, the country continued trading home-grown NFTs but in a regulatory gray area.
The document adds that China's strategy will be to “focus on key areas such as government affairs and industry, encourage the development of new business models such as NFT and dApps and accelerate the innovative application of Web3.0 and the construction of a digital ecosystem.”
Southwestern China province, Sichuan had said in August that it plans to grow its metaverse industry to reach a market size of 250 billion yuan ($35.1 billion) by 2025, The Block reported.
Digital Asset Consultant, s4mmy.moca took to his X handle after the announcement of China and said “There are 1.4 billion people in China, of which 92% are subscribed to a mobile phone service - Could we see an exponential explosion of adoption?”
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