The news has emerged today that authorities in China are working on developing their NFT marketplace that the State itself will own.
But the claim that surprised the experts was that this market would not be powered by Blockchain technology.
Critics did not welcome this idea; they argued that Chinese authorities want to go away from the blockchain and crypto to favor the fiat market.
The development of NFT or a digital marketplace is a blockchain thing as it requires the protection of the highest level.
Currently, blockchain is the only technology that can offer more protection and privacy.
Chinese Authorities Are Trying to Undermine the Crypto to Favor Fiat Market
Critics cited the latest decision of “The Hangzhou Internet Court,” in which the court passed the judgment that digital collectibles such as NFTs can be lawfully treated as assets.
Now a Chinese newspaper is reporting that authorities will soon develop a digital marketplace that will be owned by authorities and support the trade of NFTs.
According to China Daily, the newly proposed NFT marketplace will go live on the 1st of January in the coming year.
The regulators have also added that it will be the world’s second-biggest NFT trading market and be backed by international regulations. The platform will be named “China Digital Asset Trading Platform.”
As this newly proposed platform will be enforced in the entire country, there is no possibility of traditional NFT trading.
Let’s Talk of the NFT Trading in the Rest of the World
Globally the non-fungible tokens (NFTs) are being minted by blockchain technology. These minted NFTs can be exchanged for Ethereum’s native crypto token, Ether (ETH).
But Chinese policymakers want to corner-line all the crypto-related entities. They want the digital marketplace.
What is China’s Vision about Digital Tokens (NFTs)?
The authorities have encouraged the developers to launch the NFTs of their vision, which is opposite to what NFTs truly are.
At the same time, the regulators have enforced limitations on digital market trading. The regulators have argued that this will help reduce the so many speculations regarding the NFTs.
As of this writing, private platforms for the trade of NFTs are available in China. But those platforms use the digital yuan as a payment medium for NFTs purchases.
Transactions are being recorded on general ledgers, which are centralized rather than being recorded on Blockchain.
This is not it. The Country’s tech giants Alibaba and Tencent are among the private business entities that have already developed their own NFTs markets. Private developers also regulate these markets.
But the recent announcement of the State-owned NFT marketplace will make life tough for these private marketplaces.
It is similar to China’s previous move when the government launched state-owned tokens and started a crackdown against the other currencies.
For Chinese regulators, the plan is simple to ruin the private NFT sector and offer the space-owned NFT platform to traders.
On the other hand, Chinese officials have said that is the step that will help the government’s vision of “digitized culture” adoption come true.
The Project will be Developed, Run, and Governed by the Government
The state owned-China’s tech exchange will develop and oversee this project off the NFT marketplace. A similar authority deals with the country’s IT and intellectual property issues.
However, for developing such a project, the government’s developers will be backed by a private Chinese firm.
These private firms also deal with the ownership of digital collectibles and tackle intellectual property rights.
Although the government has decided to accept the help of a private development company, the decision to develop a state-owned NFT marketplace attempts to sabotage the private NFT sector.
The Crypto community across the globe has tweeted against the development of this project.
The critics do believe that China is not offering equal opportunity to those who are attached to the crypto development business in China.