- China is establishing an NFT market.
- The platform was built by the state-sponsored China Technology Exchange.
- Interoperability between the Chinese NFT market and decentralized blockchains currently seems impossible.
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China is following up its CBDC efforts with a state-sponsored NFT marketplace, which will enable the trading of digital copyrights and digital collections on a blockchain called the China Cultural Security Chain.
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According to China Daily, the Chinese government has Plan to start The nation’s first state-sponsored NFT market.
The “China Digital Asset Trading Platform,” as the article called it, is scheduled for a launch ceremony in Beijing on January 1, 2023. The platform is partially developed by the China Technology Exchange, the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the National Institute of Technology established by the Beijing Municipal People’s Government.
The NFT market is expected to enable transactions of intellectual property rights, digital copyrights, and digital collections. The platform will apparently use a blockchain called the China Cultural Security Chain, but will rely on trading tools and settlement mechanisms provided by the state-sponsored China Technology Exchange.
Details surrounding the NFT market are scarce, other than the fact that it will enable secondary trading of digital assets. The China Cultural Security Chain is likely to be highly centralized, meaning that all NFTs backed by the chain will belong to the entity that controls the chain—not the users, as is the case with Ethereum or many other blockchains.
The report also does not mention interoperability between the China Cultural Security Chain and other blockchains. Due to the current negative attitude of the Chinese government towards decentralized cryptocurrencies (country burst 2021 in cryptocurrencies and crypto-related activities) it is unlikely that non-Chinese NFTs will be supported by a government-run market anytime soon.
Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and many other cryptocurrencies.