The Chinese Government Will Build Metaverse but No NFTs are Welcome

Though the Chinese Government is planning to build the metaverse, NFTs don't fix right in the picture

The Chinese city of Wuhan reportedly shelved its nonfungible tokens (NFTs) plans due to growing regulatory uncertainty in the country surrounding crypto and Web3 technologies, Cointelegraph noted. Wuhan first announced its plans to support the metaverse and NFTs in the aftermath of the coronavirus outbreak as a way to boost its economy, which had been devastated by the pandemic. The city was the focal point of the COVID-19 breakout.

On July 13, Shanghai's Municipal Government published a draft of its "14th Five-Year Plan for the Development of Shanghai's Digital Economy." The document sets its mission of "promoting the deep integration of digital technology and the real economy," with "scientists judging technology prospects" and "entrepreneurs discovering market demand."

The plan suggests supporting the enterprises that plan to construct the NFT trading platforms and "research and promote the digitization of NFT and other assets." A separate section is dedicated to blockchain, with a voiced commitment to promote the development and application of "blockchain+" technology and build a blockchain development ecosystem with strong innovation capabilities and independent control.

However, as the number of fraudulent activities increased, so did the number of government warnings to investors against NFT trading. After several years of numerous restrictions, China finally imposed a blanket ban on cryptocurrency use in the country in 2021. However, the government's position on emerging Web3 technologies, particularly those involving the exchange of tokens or digital collectibles (NFTs), appears to be hazy at the moment.