Anti-Cryptocurrency Metaverse Attack from China: Digital Control - Coinleaks
Current Date:September 21, 2024

Anti-Cryptocurrency Metaverse Attack from China: Digital Control

China Mobile, the Chinese government-owned telecommunications company, aims to create a “Digital Identity System” for metaverse users. This system will increase the security of virtual platforms and provide a digital control. China, known for its anti-crypto stance, nevertheless leads the way in blockchain patents.

China brings its social credit system to the metaverse

Today, Chinese officials submitted a series of proposals for a “government-controlled internet” to the UN metaverse focus group. Last month, Beijing launched China’s first metaverse patent pool, allowing businesses and academic institutions to cross-license emerging industry-related technologies. The latest development involves moving the country’s controversial social credit system to the metaverse.

At this point, China-Mobile aims to create a “Digital Identity System” for all users of online virtual worlds. China has been slowly but surely implementing its controversial social credit score system (a scheme to assess a citizen’s credibility on various metrics) since 2014. Now, it wants to apply this to metaverse platforms as well.

The proposals show that the country is bidding to link a person’s “natural” and “social” traits to their digital identity and to find ways to store information permanently. However, this system brings serious problems due to its strict rules.

The anti-crypto stance is rooted in the country’s tough roots

One of the main concerns surrounding China’s social scoring system is that it could result in individuals being banned from using certain services if their behavior is deemed inappropriate. The Guardian reported on such dangers in 2018. Accordingly, he claimed that such a system in the hands of China “could interfere with the sovereignty of other nations”. That same year, Canadian media outlet The Globe and Mail also viewed the system with suspicion. Wired compared the plan for a “dystopian future that only science fiction writers can think of” in 2019.

According to Coincub CEO Sergiu Hamza, China’s quest for the metaverse is a “low-hanging fruit.” The analyst also pointed out that the country’s blockchain efforts are not “only” for a social credit system. “Social monitoring is part of the trio of Industry 4.0, the future of finance and social scoring,” Hamza said, referring to the simultaneous advancement of AI, Blockchain, machine learning and cloud technology.

cryptocoin.com As we have reported, China took a tough stance towards cryptocurrencies in 2013. Coincub CEO says the anti-crypto country’s metaverse move could lead to two possible scenarios:

Either a China-dominated Metaverse with the most amazing features available to demonstrate the sweet yuan advantages in the microtransactions space, or countries that want to “optimize” their social ratings may be looking to China for help in the future.