Wuhan removes NFTs from metaverse plans amid regulatory issues in China
China has made inroads into the metaverse since it introduced a blanket ban on digital currencies in 2021. However, non-fungible tokens (NFTs) have been relegated to the backseat due to regulators’ growing uncertainty about the asset class.
According to a report by the South China Morning Post, Wuhan is leading the way away from NFTs as it removes the draft proposal it made to attract NFT investment from its industrial plan. Under the proposal, Wuhan’s authorities would have been saddled with attracting NFT investment to the city by offering incentives to industry players.
The revised document did not mention NFTs or digital collectibles, but notes that the government and regulators will provide an enabling environment for companies to explore “decentralized operating models.” The document seems to go all in on the metaverse, stating that the city will be home to over 200 metaverse companies.
The document revealed that Wuhan has ambitious plans to build at least two metaverse industrial zones before 2025. Experts have noted that private ventures into virtual worlds have received a negative attitude from the government, while cities such as Shanghai and Beijing have announced plans to improve the digital economy to their cities through the use of the metaverse.
The shelving of NFT plans contrasts with the surge the asset class regained in 2020. OpenSea recorded hundreds of entries from Shanghai residents during the covid-19 lockdown as users tried to preserve their experiences on the distributed ledgers, but the ban on digital currencies in the summer of 2021 soured the relationship.
The global metaverse mania
The seemingly mad rush for the metaverse has made it one of the fastest growing areas of the digital asset ecosystem. Governments are throwing their hats in the ring to challenge corporate dominance, and at the moment the balance seems to be tipping in favor of state-backed virtual worlds.
South Korea sent waves of excitement through the industry after it announced it was putting $200 million into developing virtual worlds. The country’s Ministry of Science and ICT revealed that the funds will be used to train 40,000 individuals in the metaverse, with the ultimate goal of transforming South Korea to become the “fifth largest metaverse economy.”
The United Arab Emirates (UAE) appears to be moving into the metaverse as well after it was revealed that the Ministry of Economy had opened an office in the metaverse. Dubai, the most populous city in the UAE, stated that it planned to create 40,000 virtual jobs in the metaverse.
See: The presentation of the BSV Global Blockchain Convention, Masters of the Metaverse
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