Media: China to build NFT industry on state-backed BSN blockchain platform

The state-backed Chinese blockchain platform Blockchain Services Network (BSN) plans to deploy infrastructure to support NFTs not tied to cryptocurrencies by the end of January 2022, according to SCMP.

Despite Beijing’s ban on virtual currencies, NFTs “do not have legal problems in China” as long as they distance themselves from Bitcoin and other digital assets, he told the publication. The company provides technical support to BSN.

The infrastructure, named BSN-Distributed Digital Certificate (BSN-DDC), will offer companies and individuals the ability to create their own portals and applications to manage NFTs. For trading and paying for services, only the yuan will be allowed.

“In the future, the annual NFT volume in China will be in the billions,” He Yifan said.

Typically, NFTs are issued and traded on public blockchains, but such networks are banned in China, as the state requires internet systems to identify users, the executive noted.

Red Date has turned to a solution called the «open exclusive chain» — an adapted version managed by a designated group. Since its launch in 2018, BSN “localised” more than 20 public blockchains.

According to the company head, BSN-DDC will integrate 10 networks, including adapted versions of Ethereum and Corda, as well as Fisco Bcos from Tencent-backed fintech firm WeBank.

He Yifan stressed that minting NFTs on the BSN-DDC platform will be far cheaper than on other networks — issuance could cost as little as 0.05 yuan ($0.7). He said the project would be profitable by year-end if it helps create 10 million NFTs. The company forecasts the actual volume will exceed this figure.

The CEO of Red Date noted that NFT technology is more commonly used for digital artworks, but the largest market for it is certificate management, such as license plates or educational diplomas. This is a “revolutionary database technology” that can regulate access for various parties, he added.

As reported in September 2021, Chinese state media stated there was a potential bubble in the NFT sector.

In October, China’s tech giants Ant Group and Tencent on their platforms and sites changed the asset’s name to “digital collectibles”. In early November, the companies signed with several state institutions a convention on “self-discipline” in this area.

Authorities in the PRC have warned that NFTs and metaverses could be bubbles, Ponzi schemes, or other forms of financial fraud.

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