Not content to create its own version of the digital yuan, China is looking to push the boundaries on the growing craze of non-fungible tokens (NFTs) using its own blockchain infrastructure.
The second-largest economy has been at the forefront of crypto regulations since 2013. Nonetheless, governmental support of using the technology doesn’t mean that the country is averse to cryptocurrencies or, in this case, NFTs.
“China’s hostile stance regarding crypto dates back to Dec. 5, 2013, when the People’s Bank of China (PBoC), the Ministry of Industry and Information and other financial watchdogs jointly issued a notice prohibiting banks from handling transactions related to bitcoin,” CoinDesk notes.
China realizes that there’s exponential growth in demand for NFTs. As such, enter the BSN-Distributed Digital Certificate (BSN-DDC).
This infrastructure will support the developer community by allowing them to build user portals or apps to manage NFTs. To further support the digital yuan, it’s the only form of currency that BSN will support.
“NFTs in China will see annual output in the billions in the future,” He Yifan, chief executive of Red Date Technology, which will supply tech support for BSN.
Given that expansive revenue potential, big tech companies in China are already hopping on the NFT bandwagon. Companies like JD.com and Baidu are already offering digital collectibles to the marketplace.
“The BSN-DDC infrastructure has the potential to disrupt the current industry. It has already attracted more than 20 partners, including Cosmos blockchain network, digital receipt system maker Baiwang, and video technology service provider Sumavision,” the South China Morning Post reports.
Getting Exposure to China's Growing Crypto Infrastructure
Getting exposure to this NFT or overall blockchain growth in China is possible with the Invesco Alerian Galaxy Crypto Economy ETF (SATO ). While the ETF’s top exposure remains the United States at just over 54% (as of January 14), the second-largest allocation goes to Canada at 17% and then China at 14%.
This ensures that while there’s growth to be had in China, investors aren’t over-concentrated in the country. Growth is the prime focus of this fund, with over 60% of SATO’s holdings in small-cap growth.
SATO will aim to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index and provide exposure to companies participating in both the cryptocurrency and blockchain spaces, including businesses such as cryptocurrency miners, cryptocurrency infrastructure technology developers, and cryptocurrency buyers.
For more news, information, and strategy, visit the Crypto Channel.