The central Chinese city of Wuhan has abandoned a draft plan to draw investment in non-fungible tokens (NFT). This is because, despite their support for blockchain development, government authorities are still skeptical of digital assets.
The line concerning NFTs that was in a draft plan from August is no longer in the most recent industrial plan from the Wuhan government for the growth of the city’s metaverse from 2022 to 2025. The city would push harder to attract business and investment to places like NFTs, according to the original proposal.
NFTs and digital collectibles were not addressed in the new version, which was released on Friday, even though the government still urges businesses to consider “decentralized operation models” and pledges to assist the growth of Web3.
Uncertainty surrounds the concept of Web3, which is frequently referred to be the next iteration of the internet based on decentralized technologies like blockchain. Self-described Web3 apps frequently employ cryptocurrencies, non-fiat cryptocurrencies, and NFTs outside of the People’s Republic of China.
Since mining and selling cryptocurrencies are illegal on the mainland, state-run entities have been attempting to advance blockchain technology without the use of cryptocurrency.
However, responses to local governments’ efforts to direct the development of the metaverse, Web3, and other well-liked technologies have varied thus far.
The Shanghai government first pledged funding for Web3 development in July as part of its 14th five-year plan. Entrepreneurs questioned if it would significantly alter things in a nation that dislikes cryptocurrencies and decentralization.
In its new plan, Wuhan stated that by 2025, it aims to expand or attract more than 200 metaverse businesses, as well as establish at least two metaverse industrial parks.
On the other hand, for the past few years, Hong Kong has only let professional investors to trade cryptocurrencies. It recently stated that it takes a different stance on virtual assets than the rest of mainland China.
The government put up a series of regulatory amendments on Monday, just in time for the city’s FinTech Week event, in an effort to reclaim Hong Kong’s position as a global center for cryptocurrencies. The sale of cryptocurrency-related assets by financial institutions to retail traders will be made possible by a new licensing system for providers of virtual assets.
According to the digital asset leader at Deloitte China, this has led to certain mainland financial institutions, which are prohibited from dealing with bitcoin assets at home, considering establishing or reactivating virtual asset projects in Hong Kong.