The country’s former head of digital currency says Web3 adoption is critical to China’s future success.
Yao Qian recently published an article explaining the importance of forward-looking research and strategic infrastructure development.
Yao predicted that Web3 would rebuild the organizational structure and business model of the Internet economy and was expected to significantly improve the existing Internet ecosystem.
“On the one hand, Web3 can realize the self-management of identity on the user side, and on the other hand, it can also realize the self-management of addresses on the network resource side, truly realizing the dissolution of the end – to-end access process,” she said in the report.
While China continues to ban private cryptocurrencies, it sees a bright future in blockchain technology. And the adoption of Web3 would be a logical focus for the country’s leadership.
After several months of piloting, China launched its central bank digital currency (CBDC) during the Beijing Winter Olympics last month.
China’s metaverse is worth $50bn by 2025
And Chinese tech firm Baidu announced it was working on a Metaverse project last December. According to a report, the country is expected to be a $50 billion industry by 2025.
Chinese companies such as NetEase, iQiyi, and Xiaohongshu have already applied for trademarks for projects related to the Metaverse, and there are estimated to be around 4,000 Chinese companies in the region.
But how will decentralized Web3 work in centralized China?
The big question is whether China will use its Internet firewall to control the metaverse as well.
Last month, Mario Stefanidis, vice president of research at Roundhill Investments, told The Wire China that it would be easier for China to oversee its domestic metaverse market.
The Securities Regulatory Commission of China has also come out with its recommendations, which include building high-quality distributed infrastructure, establishing common standards, establishing a legal framework for DAOs, a taxation framework and well-controlled technological innovations.