Hainan, China, will increase NFT control as the digital yuan trial intensifies.
Although it will actively endeavor to eliminate dishonest players and speculative activity, Hainan’s market regulator aims to promote NFTs as a component of the digital economy.
Authorities from the southern Chinese province of Hainan have committed to tighten regulation of the nonfungible token (NFT) market in order to “support the healthy development” of the industry and eliminate fraud and other risks that may be present.
The Central Bank Digital Currency (CBDC) pilot programme, also known as the digital yuan or eCNY, is being developed by the People’s Bank of China (PBoC), according to a separate release.
NFT Oversight
In a comprehensive strategy to address the NFT sector going ahead, the market regulator for Hainan and nine other provincial agencies laid it out in a public notice published on January 29.
The regulator is emphasizing the promotion of NFTs as a component of the digital economy, particularly as a means of luring foreign investment to the Hainan Free Trade Port, according to a translation of the document.
However, according to the provincial agencies, they intend to regulate the NFT market in a way that prevents “market instability” including false information, speculating, copyright theft, fraud, money laundering, and phony value.
Some of the suggested actions include “severely” enforcing existing legal frameworks like the “anti-unfair competition statute” against false propaganda, preventing copyright infringement by advising and pressuring internet platforms to remove such information, and cracking down on fraud.
Educating the public about the “risks and laws” of the industry has also been prioritized in order to help them “buy prudently” and prevent losses from irrational speculation on NFTs.
Although the asset class has not been subject to significant blanket bans, unlike private cryptocurrencies, the Chinese government has had a distinctive perspective on the NFT sector since it rose to prominence. State agencies have frequently been quick to discourage any sort of speculative behavior.
Digital yuan adds bells and whistles
Hainan, China, will increase NFT control as the digital yuan trial intensifies.
The People’s Bank of China (PBoC) intends to add new capabilities to its ongoing pilot trials of the digital yuan, according to a statement posted via Baidu on January 30.
To make the CBDC more user-friendly, the bank said that it is creating a QR code-based transaction system that “consumers can scan with one code'”.
Additionally, it stressed how these technological advancements will aid China in “realizing the connectivity between the digital renminbi system and traditional electronic payment systems.”
The ability of shops to “enable multiple transactions” while reducing the growth in consumer costs is another lauded advantage of the QR code technology.
The PBoC underlined that in 2022 it had launched over 30 digital yuan red “envelope operations” in which it airdropped modest quantities of the asset to citizens. It had also conducted the CBDC trial across 17 provinces.
In particular, payments for “low-carbon travel” like public transportation were encouraged through the usage of the campaign.
The incorporation of smart contracts gave the eCNY network a significant improvement earlier this month.
The Meituan delivery service, which focuses on food and shopping, has introduced smart contract functionalities, according to a report from local cryptocurrency media outlet 8btc.
A smart contract is triggered and searches for keywords and ordered products in the user’s order when they place an order and pay with their e-CNY wallet. A user enters a drawing to win a share of a reward worth about $1,300 if they purchase something from the list of keywords for the day.