Even amid a strict ban on cryptocurrency trading, China continues to embrace blockchain technology. The government has expressed its intention to encourage the development of non-fungible tokens (NFTs) and decentralized applications (DApps).
China Plans to Promote NFTs and Decentralized Applications Despite Cryptocurrency Ban
The Ministry of Industry and Information Technologies explained this strategy in a document published and outlined plans to create strategy documents that clarify the development path of Web3.
The central government has signaled encouragement for the exploration of new business models such as NFTs and DApps, highlighting key areas such as governance and industry.
The goal is to accelerate innovative applications and build a digital ecosystem for Web 3.0. The document was prepared in response to questions from Johnny Ng, a member of the CPPCC National Committee, China's top political advisory body.
The Ministry of Industry and Information Technology announced its intention to launch distributed digital identity-related pilots aimed at investigating Web3 digital authentication and management.
This latest push by the central government into web3 development follows promises made by several local governments earlier this year to nurture the metaverse industry.
In August, the southwestern Chinese province of Sichuan, once known as a crypto mining hub before the national mining ban, announced plans to expand its metaverse industry.
*This is not investment advice.