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- 1 Research institutions are already in place overlooking areas like the metaverse.
- 2 Web3 is considered the next iteration of the internet.
China is working its way up in the web3 sector as the nation has shown interest in the technology in the latest statement issued by the Ministry of Industry and Information Technology (MIIT). The Ministry says that lay down a lot of emphasis on the sector.
Metaverse and NFT Sector Might Get a Boost
Previously, MIIT has issued policies like “Guiding Opinions on Accelerating the Application of Blockchain Technology and Industrial Development” and the “Blockchain Information Service Management Regulations” in collaboration with the Cyberspace Administration of China.
Research institutions are already in place overlooking areas like the metaverse and non-fungible tokens alongside Web 3.0. According to the statement, China’s web3 landscape currently covers sectors including healthcare, tourism, education, and more. Furthermore, pilot programs have been carried out to implement the technology in other fields like energy, copyright, law, and more.
The Ministry appears keen on the development of four key areas including design, research, international relations, and promotion. The statement reads, “Focus on key areas such as government affairs and industry, encourage the development of new business models such as NFT and distributed applications (DApp), and accelerate the innovative application of Web3.0 and the construction of a digital ecosystem.”
The country has previously implemented a blanket ban on cryptocurrencies which is among the vital aspects of the web3 sector. The ban resulted in increased activity in other nations, specifically in terms of crypto mining. In 2021, the nation implied that the action was to maintain national security and social stability according to American business newspaper The Wall Street Journal.
Moreover, the non-governmental organization World Economic Forum (WEF) writes that “There is strong evidence to suggest that the cryptocurrency prohibition was a response to the perennial problem of capital flight from China.” In the event of capital flight, an overwhelming number of financial assets and capital moves out of a nation rapidly, particularly due to factors including political or economic instability.
In September 2023, South China Morning Post, an English-language newspaper in Hong Kong, reported that China is laying out plans to develop a domestic metaverse. The document revealed the nation has mapped out a blueprint centered around “three to five industrial clusters.”
Furthermore, the document issued by MIIT and other Chinese agencies stated that the metaverse holds the potential to “lead the next generation of internet development, and accelerate the upgrade of the manufacturing industry to be more advanced, intelligent and greener.” As of now, the global metaverse sector is experiencing a slowdown in growth.
Blockchain, among the essential technologies for the metaverse, was mentioned in the document. The technology could prove useful in areas like data transfer and governance in virtual worlds. In September 2022, Henan province in China revealed its strategy to develop a 100 Billion Yuan metaverse industry (nearly $14 Billion).
Data shows that web3 currently holds a market cap of $27.5 Billion. A study conducted by global crypto exchange Coinbase that nearly 31 percent of respondents were using web3
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
