Wuhan backtracks on metaverse industry plan to support NFTs as cryptocurrencies remain a no-go in China
- A draft proposal by the city government to attract NFT business and investment has been removed from a new version of the document
- Efforts by local Chinese governments to steer the development of metaverse and Web3 have been met with mixed reactions
The central Chinese city of Wuhan has walked back a draft plan to attract non-fungible token (NFT) investments, as government officials remain wary of digital assets despite embracing blockchain development.
In the Wuhan government’s latest industrial plan on the city’s metaverse development from 2022 to 2025, a line about NFTs that appeared in the draft proposal in August is no longer found. The original plan stated that authorities would strengthen efforts to draw business and investment to the city in areas such as NFTs.
While the new version, published on Friday, still said that the government encourages companies to explore “decentralised operation models” and that it would promote the development of Web3, it made no mention of NFTs or digital collectibles.
Web3, a loosely defined concept, is commonly referred to as a next-generation internet based on decentralised technologies including blockchain. Outside mainland China, self-proclaimed Web3 applications often involve cryptocurrencies and NFTs.
On the mainland, where cryptocurrency trading and mining are banned, state-run organisations have been trying to advance blockchain development without the involvement of such tokens.
But efforts by local governments to steer the development of the metaverse, Web3 and other trending technologies have been met with mixed reactions so far.
In its new plan, Wuhan said it aims to cultivate or bring in more than 200 metaverse companies in the city, and build at least two metaverse industrial estates by 2025.