In China, despite the ban on cryptocurrencies, government institutions continue to promote or develop DeFi and NFTs

China and crypto, development continues

In the last few hours, the Chinese Ministry of Industry has communicated how it intends to formulate a new strategy to promote the development of decentralized applications and NFTs, confirming its intention to focus on blockchain technology despite a still existing ban on the exchange of cryptocurrencies.

In a document released in the last few hours, in fact, the ministry has taken stock of a new strategy to be adopted for the development of Web3 within national borders.

“The emphasis will be placed on key areas such as governance and industry, with the encouragement of the exploration of new business models such as NFTs and dApps, encouraging the development of innovative applications and the construction of a digital ecosystem for the Web3 ″ the government body said.

In play, right from the start, there are above all new pilot projects linked to digital identity, to explore its management through the tools introduced by web3.

Blockchain always at the center of attention in China

The regulatory "paradox" that is taking hold in China is based on the will of some local governments in contrast to "central" directives, born primarily from attempts to develop the metaverse industry. Sichuan, for example, which was once one of China's mining centers, has converted its industry to the metaverse sector, promising to reach a market size of $35.1 billion by 2025.

To date, the Chinese entities linked to the sector operate in a regulatory gray area, which has allowed, for example, the NFT trade to survive.

At the same time, it is in the interest of the central government itself not to miss the train of development in the blockchain field, and this has been demonstrated by the innovations introduced by the Service Network China, a new decentralized identification system, developed by the Ministry of Public Security, based precisely on this technology. Despite the crypto ban introduced in 2021, China's progress in blockchain technology is therefore not indifferent.

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