China Outlines the Future of web3 and NFT with a ‘Strategy Document’

China Outlines the Future of web3 and NFT with a 'Strategy Document'

The Ministry of Science and Technology in China has introduced a web3 strategy that embraces the development of new business models, focusing on non-fungible tokens (NFTs). Despite China’s ban on cryptocurrencies, this strategy underscores the government’s responsibility to the web3 industry.

In collaboration with the Chinese Academy of Sciences and the China Association for Science and Technology, China’s Ministry of Science and Technology plans to release a comprehensive web3 strategy document. This document aims to clarify the nation’s path in the web3 industry, addressing aspects such as inheritance, innovation, security, and government responsibilities.

The strategy also emphasizes the importance of promoting interaction between relevant government departments to boost web3 innovation, conduct extensive research, and cultivate talent within the industry. Its approach seeks to leverage web3 technologies for the benefit of the government and businesses.

Despite the Chinese government’s cryptocurrency regulations, Chinese citizens have enthusiastically embraced NFTs. The Ministry of Science and Technology acknowledges NFTs and is responsible for supporting their continued development. NFTs have been offering digital assets with applications ranging from digital art and collectibles to virtual real estate.

China’s web3 initiatives in action

The Ministry of Science and Technology, in collaboration with the Cyberspace Administration of China, has already released a series of policy documents to accelerate the adoption of blockchain technology and its industrial development. These documents set the stage for a thriving blockchain ecosystem in China.

The recent publication by China’s Ministry of Science and Technology aligns with the country’s established approach to blockchain technology. While China is actively investing in the potential of blockchain, it continues to enforce stringent oversight and control. This strategy is consistent with actions taken in 2023, when China implemented aggressive measures to combat fraud in the crypto and AI sectors.

Various government departments, including the Cyberspace Administration of China, the Propaganda Department of the Central Committee, and the Supreme People’s Court, have undertaken blockchain pilot projects across diverse fields, such as energy, the rule of law, copyright protection, and trade finance.

Key focus areas of China’s web3 strategy

China’s web3 strategy revolves around four key areas. Firstly, the government is dedicated to advancing research and development in the web3 sector. Secondly, there’s a focus on enhancing the technical research and supervision framework to ensure the secure and responsible evolution of web3 technologies. Thirdly, China aims to collaborate with international partners and closely monitor web3 developments. Lastly, an emphasis is placed on boosting public awareness and promoting the adoption of web3 technologies to drive their acceptance and utilization.

This announcement comes in response to a proposal by the 14th CPPCC National Committee, an advisory body within the Chinese government. It emphasizes research into the concept of a metaverse and NFTs, especially regarding decentralized identity management, detailed in a document responding to queries from CPPCC National Committee member Johnny Ng, which is led by the Ministry of Industry and Information Technology.

The plan includes creating strategic documents for web3 development and embracing projects for distributed digital identity systems. This shows China’s responsibility to integrate blockchain technologies into its digital framework and virtual digital entities.

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