- The launch of the “China Digital Asset Trading Platform” (CDEX) may mean a major change for crypto trading in the nation.
With a population of almost 1.5 billion inhabitants, China is the country with the most residents in the world, which is why each of its decisions is very important, especially when they are economically related. The territory marks a “trend” and its first movements during 2023 were encouraging for the crypto space.
After a difficult 2022, in which cryptocurrencies lost their support month by month and closed the year well below expectations, there may be some change in trend for the coming months after the move by the country led politically by Xi Jinping, who has shown to have a more global and open outlook compared to his predecessors in office.
China reopens to digital assets
On January 1, in Beijing, the Chinese capital, a very special launch took place: the appearance of the first national market / marketplace of digital assets and non-fungible tokens (NFT).
The “China Digital Assets Trading Platform” (CDEX) is managed by two state-owned companies (China Technology Exchange and Art Exhibitions China) plus Huban Digital, privately owned, as Bitcoin Mexico had published at the end of 2022.
This market, in which NFTs and other digital assets authorized by the State will be marketed, does not use the Ethereum blockchain or another of the great protagonists of the ecosystem, but rather the authorities created their own network, which is called the Chain of Cultural Protection. from China.
“The platform was created by the China Technology Exchange, the Cultural Relics Exchange, and the Copyright Service Center to standardize trading processes and eliminate black market speculation in digital assets.developed the medium The Defiantwhile reporting that there is an “innovation working group made up of Chinese museums, tourism organizations and copyright holders is contributing to the project.”
At the moment there are no active collections nor is it allowed to upload your own articles since the platform only allows the creation of users and registrations.
Why did China get involved in this project?
The rapid adoption of avatars, clothing, and art in the metaverse was a draw. It is worth noting that China is one of the countries that is prohibited from trading digital assets and that “kicked out” its miners arguing the high consumption of electricity.
“NFTs could be used as a vehicle for money laundering, illegal financing, and unregulated speculative trading.”was the argument that the country’s authorities maintained for years before changing their minds.
The curious thing about this innovation is that there will be no cryptocurrencies in the commercialization of the digital representations. Transactions will be settled in yuan, so it is likely that payments go one way and NFTs go another. After all, it seems like a half-hearted adoption.
In addition to digital NFTs, according to He Yifan, general director of Red Date Technology, highlighted, they could circulate through the blockchain “educational titles, vehicle registrations and other certification schemes”, thus taking advantage of network security.
A change in position as marked as that of China may mean a greater opening of the Asian country, while it could encourage other countries in the region or the G20 to maintain a policy closer to cryptocurrencies.
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