China aims to separate NFTs from crypto via new blockchain infrastructure

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China plans to draw a clear line between cryptocurrencies and non-fungible tokens (NFTs), much the same way it did with its digital currency efforts, before the crackdown on crypto in the country is hurting the local NFT industry.

The Blockchain-based Service Network (BSN), a government-backed blockchain project in China, is working on infrastructure that would help businesses and individuals build platforms and applications to manage NFTs, the South reported. China Morning Post.

Officially called BSN-Distributed Digital Certificate (BSN-DDC), the project aims to support the deployment of non-cryptographic NFTs by providing application programming interfaces for the development of user portals and applications where fiat currency would be the only means of payment.

Noting that NFTs have no legal issues in China until they are used with Bitcoin (BTC) or other cryptocurrencies, CEO of technical support provider BSN Red Date Technology, Yifan He, said that the upcoming infrastructure would use an open and authorized blockchain to enable a governing body of the chain.

“Public channels cannot be operated legally in China,” he told Cointelegraph, adding that credible, low-cost infrastructure is desperately needed to host all NFTs in China. Without a nationwide dedicated NFT infrastructure, NFTs can only be deployed on “unreliable” private channels in the country, the executive added.

By allowing a centralized entity to govern the infrastructure and intervene in the event of illegal activity, Red Date plans to create a compliant NFT platform that is completely separate from the regular crypto profile.

He noted that Red Date is working with all DDC project partners to make the network as transparent as possible, while remaining compliant with Chinese laws and regulations. All gas costs on the BSN-DDC network are paid in fiat currency.

“We will provide services to NFT companies in Hong Kong, which means if there is any international business involving the issuance of NFT in China, they can definitely choose to use BSN-DDC network through our Hong Kong gateway. Kong. “

Related: CBDC Wallet To Top China’s Mobile App Store Charts

China Mobile, China UnionPay, and the state-owned State Information Center support BSN’s NFT infrastructure. The BSN-DDC will integrate 10 blockchains, including the adapted version of Ethereum and Corda as well as Fisco Bcos from WeBank, he said.

Last year, Red Date Technology signed an agreement with a Turkish consultancy Turkish Chinese Business Matching Center to launch two international BSN portals in Turkey and Uzbekistan.

As Cointelegraph reported, the new portals will allow blockchain developers in Turkey and Uzbekistan to build blockchain-as-a-service applications using the BSN global portal hosting major blockchains like Ethereum network, Algorand, Polkadot, Tezos, ConsenSys Quorum, Corda et al. .

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