In a joint effort between the state-owned China Technology Exchange, China Art Exhibition and company Huban Digital Copyrights Ltd, China’s first national NFT market is scheduled to go online this week.
It is designed as a secondary market for trading digital collections, along with copyrights for digital assets. Perhaps unsurprisingly, it is built on China’s national Wenbao, or “cultural protection” blockchain, which helps verify the authenticity of artifacts and commercial goods. Currently, only the landing page of the NFT platform is accessible.
1400 blockchain companies in China
On December 29, the China Academy of Information and Communications Technology, or CAICT, announced in a national white paper that more than 1,400 blockchain companies are operating in the country despite strict regulations. Together, Chinese and US blockchain companies account for 52% of these entities worldwide. In one example of a distributed ledger application in a public service, CAICT researchers wrote:
“[In the] Zhejiang Province blockchain electronic invoicing platform, [authorities] using multiple blockchain access points and decentralized process capabilities, along with technological highlights such as smart contracts, to increase trust verification across multiple departments. This results in the digital circulation of electronic invoices; issuance, receipt, inspection, reimbursement, and improve the level of information management and electronic invoicing service capabilities in the finance department.
In addition, local news outlet Shanghai Securities News reported that the central bank’s digital yuan digital currency, or e-CNY CBDC, has exceeded 104.8 billion Chinese yuan ($15.21 billion) in use in Zhejiang province since its launch in April. Provincial residents have opened 24.14 million e-CNY wallets, and authorities claim to have distributed 3.5 billion yuan ($510 million) in tax refunds via e-CNY to residents as an experiment. Despite these results, experts such as former Chinese central banker Xie Peng say there is “low use” for CBDCs.
KPI blockchain Kunming
On December 30, Kunming City published a three-year plan for the development of the municipal digital economy. The report set a 25% annual growth target for the city’s digital economy to exceed 500 billion yuan ($72.58 billion) within two years. In addition, local-level communist party officials must meet collective key performance indicators to incubate at least 20 blockchain-specific applications and encourage the development of at least 10 “highly competitive” and technologically advanced blockchain companies by the end of 2024. “Please implement. [them] fully and completely,” the document said.
Metaverse Moutai reaches 1 million users
On January 1, popular Chinese liquor distiller Moutai and internet technology company WangYi launched their joint metaverse Xunfeng World on the Apple App Store. The developers designed the experience based on the Moutai distillery in Guizhou province. Players can interact with each other and distillers to learn the traditional Moutai-making experience.
Just two days later, registered users surpassed 1 million, with the app ranking No. 1 in the e-commerce category in China. However, the app only has a 2.4/5 rating at the time of writing, with users complaining about in-game features, “excruciating” wait times for Know Your Customer verification, login difficulties and poor customer service. One user wrote:
“There is no customer hotline, no customer service, and I don’t know where to solve the problem. I look forward to joining from the waitlist, but I can’t pass KYC on the day of the app release. What’s wrong? I’m really asking you take money so I can play this game, but you don’t seem to want it?”
Hong Kong crypto scams are worse
Currently, Hong Kong residents cannot trade cryptocurrencies unless they are classified as “professional investors” or have at least 8 million Hong Kong dollars ($1.02 million) in bankable assets. However, these regulations have done little to curb the rise of crypto fraud.
A recent Hong Kong police report cited by Rthk.hk revealed that in the first 10 months of 2022, the special administrative region recorded 1,503 cases of investment fraud involving total assets of $98.5 million, up 10% from the same period last year.
About 70% of frauds are classified as involving crypto. One of the victims, Mr. Lee, reportedly lost 180,000 HKD ($23,000) after being contacted by a representative who claimed access to exclusive inside information on the price of SUSHI tokens. Mr Lee later called the police after his trading account was allegedly deleted without explanation.
Square Enix is all about blockchain
In an annual letter published on January 1, Yosuke Matsuda, president of Japanese gaming giant Square Enix, said the company will shift its business focus to blockchain entertainment. The move follows Square Enix’s May 3 announcement that it will sell its blockbuster Tomb Raider video game franchise and use the proceeds to invest in new initiatives such as blockchain, although it will retain other popular franchises such as Final Fantasy. Matsuda wrote:
“I think it is fair that blockchain will gain significant recognition as a field in 2022, as evidenced by the ‘Web 3.0’ becoming a well-established keyword among entrepreneurs. However, the year also saw volatility in the cryptocurrency and NFT markets that tracked dramatic changes in the aforementioned macroeconomics.
Matsuda also said that aside from monetization, blockchain and NFTs should “deliver new experiences and excitement to customers” and that the company has “various blockchain games based on original IPs under development.” In its latest filing, Square Enix reported 163 billion Japanese yen ($1.23 billion) in revenue and 39.4 billion yen ($297 million) in profit for the first six months to September 30.
