Tuesday, September 26, 2023
HomeUpcoming NFTChina's Hainan to boost NFT oversight as digital yuan trial ramps

China’s Hainan to boost NFT oversight as digital yuan trial ramps

Authorities in southern China’s Hainan province have pledged to strengthen oversight of the non-fungible token (NFT) sector to “promote the healthy development” of the sector and eliminate fraud and other related risks.

In a separate announcement, the People’s Bank of China (PBoC) also announced that it is working on its new features. central bank digital currencyy (CBDC) pilot program. It is called digital yuan or eCNY.

Supervision of NFTs

in the announcement Posted On January 29, Hainan’s market regulator and nine other agencies in the province outlined a long-term plan to tackle moving forward in the NFT sector.

A translation of the document reveals that the regulator is focusing on promoting NFTs as part of the digital economy, especially as a way to attract foreign investment to the Hainan Free Trade Port.

But state agencies say they want to oversee the NFT market in a way that limits “market disruption” such as misleading information, speculation, copyright theft, fraud, money laundering and fictitious values.

Some of the measures outlined include “severely” cracking down on false advertising under the current framework, such as the “Unfair Competition Prevention Act”, and instructing and encouraging Internet platforms to remove such content. This includes preventing copyright infringement and cracking down on fraud.

There is also a focus on educating the public by communicating the “risks and laws” of the sector so they can “buy wisely” and avoid losses from wild NFT speculation. increase.

The Chinese government has its own outlook on the NFT sector since its surge in popularity, but the asset class, unlike private cryptocurrencies, has not responded to a major blanket ban. deter speculative behavior.

Digital yuan adds bells and whistles

according to the announcement share Via Baidu on January 30, the People’s Bank of China (PBoC) long pilot trail digital original.

To make CBDC easier to use, the bank suggested it was developing a QR code-based trading system that “consumers can ‘scan with one code’.”

It also stressed that such technology integration would help China “realize interconnection between the digital yuan system and traditional electronic payment tools.”

Another touted benefit of the QR code system is that it allows merchants to “support a wide variety of transactions” while limiting the increase in costs for consumers.

The PBoC emphasized that it will pilot CBDCs in 17 provinces in 2022, deploying about 30 digital yuan red “envelope activities” and airdropping a small amount of assets to citizens.

The campaign was used to encourage the use of assets, especially when it comes to paying for “low carbon travel” such as public transport.

Related: UK Bitcoin Community Reacts To Incoming CBDC And Digital Pound Rollout

Earlier this month, the eCNY network announced that Smart contract integration.

According to a report by local cryptocurrency media outlet 8btc, the smart contract functionality was launched via Meituan’s food and retail-focused delivery app.

When a user places an order and pays on the e-CNY wallet, a smart contract is triggered to search for keywords and purchase items for the order. When a user purchases something on his list of keywords for the day, they enter a drawing to win a portion of prizes worth approximately $1,300.