Another groundbreaking development is China’s introduction of a new concept for Web3, which signals the country has turned around on its former posture towards cryptocurrencies and related technologies. It is a strategy that promotes NFTs (non-fungible tokens) and decentralized applications to stimulate innovation, raise security levels of government and industry users alike, as well as increase transparency in the exercise of power at all levels.
A Pivotal Step: China Goes to Market with NFTs and dApps
China is working with the highest parties (the Ministry of Science and Technology, Chinese Academy of Sciences, etc.) to develop its Web3. Wu Jiezhuang says that this effort is aimed at encouraging entrepreneurship in NFTs and dApps, which are an objection to the country’s current prohibition of digital assets. Regulatory challenges notwithstanding, the government is aware of its citizens ‘ever-increasing interest in NFTs and remains dedicated to developing a stable digital environment as well as actively promoting Web3 development.
Pioneering Digital Identity: China’s Forward-Thinking Approach
This strategy includes the rollout of pilot programs for distributed digital identity (DID). China is doing Web3 digital identity verification and management, which tracks with local government planning to develop the metaverse industry. But even though traditional applications for cryptocurrency are somewhat limited at the moment, the Ministry of Industry and Information Technology (MIIT) is also actively promoting pilot projects in distributed digital identity with public certification.
Legal Clarity and Standardization: A Transformative Shift
In September the People’s Court in China released a long-awaited report, to rewrite the nation ’ s understanding of crypto assets. To promote Blockchain-based Web3 technologies, the National Standardization Committee and the Ministry have established a national block chain technology standard committee.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.