Summary:
- The government of Shanghai seems to be warming up to NFTs.
- It has recommended the exploration and development of NFT trading platforms.
- Shanghai’s government sees NFTs as a means of protecting Intellectual Property and digital rights.
- However, the recommendation was not at the national level and was only made by Shanghai’s government.
Shanghai’s government has broken from China’s stance against digital assets such as Non-fungible tokens for their volatility and associated risks.
According to a Notice of the General Office of the Shanghai Municipal People’s Government on Printing and Distributing, the government of Shanghai has warmed up to NFTs, stating that it encourages ‘leading companies to explore the construction of NFT trading platforms.’
NFTs Could be Used to Protect Intellectual Property and Digital Rights.
The notice discussed Shanghai’s ’14th Five-Year Plan for the development’ of its digital community.
In addition, the government of Shanghai believes that NFTs could be used to protect intellectual property and digital rights. The notice said:
Support leading enterprises to explore the construction of NFT (non-fungible token) trading platforms, and research and promote the digitization of NFT and other assets, the global circulation of digital IP, and the protection of digital rights to be piloted in Shanghai…
Develop blockchain business models, focus on the development of blockchain open source platforms, NFTs and other business models, and accelerate the exploration of digital transformation and digital technology applications in the fields of virtual digital assets, artwork, intellectual property, and games.
The NFT Trading Platforms Will Most Likely Be Nationalized or Through Major Chinese Tech Giants.
However, given China’s history of nationalizing most of its technology, it is highly probable that the NFT trading platforms will most likely be issued and monitored by the Shanghai Government and unavailable to the rest of the world.
Another scenario is that the NFT marketplaces will be integrated into those of tech giants in China, such as Tencent, Alibaba, and Baidu.
The likelihood of the above two scenarios is hinted at by the Shanghai Notice’s introduction stating that President Xi Jinping has guided it. It says:
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 19th National Congress of the Communist Party of China and the 19th Plenary Sessions, thoroughly implement the requirements of General Secretary Xi Jinping’s important speech on his inspection of Shanghai, seize new opportunities for global digital development, and use data as a key element , with the main line of promoting the deep integration of digital technology and the real economy…
[Feature image of Shanghai courtesy of Unsplash.com.]