China wants to draw a clear line between cryptocurrencies and Non-Fungible-Tokens (NFTs). This by developing a new blockchain infrastructure.
Help with development of apps and platforms
A government-backed blockchain project, the Blockchain-based Service Network (BSN) is reportedly working on a new infrastructure that will support both businesses and individuals in building apps and platforms to manage NFTs.
The new project has been named ‘BSN-Distributed Digital Certificate’ and aims to support the deployment of non-crypto NFTs through various application programming interfaces. This, in turn, aids in the development of apps and platforms where fiat currencies are the only payment methods.
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No legal issues
It is worth noting that NFTs in China currently pose no legal problems of any kind, as long as they are not used with Bitcoin (BTC) or other cryptocurrencies.
However, it is not legal in China to manage public blockchains. It is therefore necessary to develop a new and special NFT infrastructure. Without this special infrastructure, NFTs can only be used on China’s untrustworthy private blockchains in the country.
Separating NFTs and Cryptocurrencies
Then, by having a centralized entity manage the infrastructure, a fully compatible NFT platform can be created in China, completely distinguishing NFTs from ‘regular’ cryptocurrencies.
However, every effort is reportedly being made to make the network as transparent as possible. Where tokens are regularly used in blockchains to pay gas fees, the gas fees will now be paid in a fiat currency. It is not yet known when the new infrastructure will be ready for use. It also has to meet all legal requirements before it can be used, which may cause some delay.