Wuhan City Shelves NFT Plans Amid Growing Uncertainty In China
China stands among the top jurisdictions with solid opposition to crypto assets and NFT culture. The region shook the crypto space in 2021 with restrictive measures on crypto mining.
It pronounced a complete crackdown on BTC mining which brought a drastic decline in the value of BTC. Also, its stance on virtual currency affected the entire crypto market negatively till today.
Over the years, China has maintained a clear restrictive position regarding using cryptocurrencies. This led to its drastic movement against digital assets in 2021. But its stance on Web3 technologies that involve NFTs and the exchange of tokens is currently foggy.
The Chinese government has suddenly developed an interest in the metaverse due to the growing speed in this space. This growth facilitates its plan to create a metaverse economy within the region. But its restrictive measures on crypto assets are limiting the development plans.
Wuhan Removes NFT Culture From Initial Metaverse Draft Plan
A source disclosed that the Wuhan region of China is ready to dive into Web3 innovative technologies. The city plans to leverage the metaverse by developing a suitable economy for its region.
But the regulatory uncertainty in China is forcing it to shelve the inclusion of non-fungible tokens (NFTs) in its plan.
Following the severe effects of the coronavirus, Wuhan announced its interest in the metaverse and NFTs. The city noted that such a move would help boost its unstable economy, which the pandemic destroyed. This is because Wuhan was the epicenter of the COVID-19 pandemic.
NFTs were part of the initial draft industrial plans of the Wuhan government for its metaverse economy development. But a South China Morning Post report noted that the recently amended draft had omitted Non fungible tokens. It reported that the current version preaches for more brands to embrace decentralized tech and Web3.
Wuhan’s New Draft Version For Metaverse
The revised draft from the Chinese government completely removes the exchange of tokens or digital assets. This is the new stance of the regions regarding development plans on projects related to the metaverse.
Notably, some Chinese cities, such as Beijing and Shanghai, have revealed their plans for metaverse-related innovations without including NFT. The government has unleashed hostility toward private or tech giants dealing with NFTs.
So, Wuhan’s new plan is to involve over 200 metaverse companies in its project. Also, it will build a minimum of two metaverse industrial estates by 2025.
Despite China’s cryptocurrency ban, many people are interested in the NFT sector. Hence, the NFT sector in China witnessed explosive growth.
Several listings from Shanghai flooded OpenSea, the NFT marketplace, during the COVID-19 lockdown. But the government later started issuing warnings against NFT trades due to the increasing fraud in the sector.Source