The metaverse is bringing in billions of dollars and millions of users, but China is still wary of this new, risky virtual world. In a recent article, China’s State Council warned that the metaverse might not be right for all areas and told investors to be careful when making bets on the metaverse.
China has been supportive of the metaverse. Several regional governments have taken different steps to help the virtual world grow and become more popular. But they have put in a lot of work to separate themselves from NFTs and digital assets.
The China State Council, which is in charge of running the Asian country’s government, is now warning people not to rush into the metaverse.
“The metaverse industry sounds promising, but it may not fit every region. Be wary of feverishly following suit and betting big on it while detached from reality,” a recent article in the Economic Daily states.
The Council says that the hype about the metaverse right now is like the interest in new energy a few years ago. Because of this interest, there is too much solar and wind energy being made in many parts of China.
Even though President Xi Jinping’s government was warned, the Council said again that it fully supports the metaverse. The article says that at least 30 local governments in China have made policies that support the development of the metaverse. There are also 18 industrial parks in the country that help metaverse projects grow.
This month, the Ministry of Industry and Information Technology released a 12-page plan for developing the metaverse in the country. Beijing and Shanghai have also announced plans that are very similar.
Even though local governments are pushing the metaverse, they are careful not to get caught up in NFTs or digital assets because the government is cracking down on these two areas.
Wuhan is one of these places. After the COVID-19 pandemic, the city’s local government said in January of this year that it would support the metaverse and NFTs to get the economy going again. But at the beginning of this month, the city changed the proposal so that NFTs and digital collectibles were no longer mentioned.
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