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China Set to Introduce Social Credit System into the Metaverse

On Sunday, August 20, the Chinese news outlet POLITICO reported that the authority is exploring ways to launch a new system that resembles the social credit system into the metaverse space. The report illustrated that a government-owned telecommunication company China Mobile had proposed the development of a digital ID that operates well on metaverse and online platforms with natural and social characteristics. 

China to Support Metaverse Sector

In the report, the China Mobile group outlined the features and the importance of the digital ID. The telecommunication company stated that the ID will leverage advanced technology to improve the safety of the online sector.

However, the proposed ID will contain sensitive information, including personal data, that will be stored and shared with relevant authorities. The tech firm highlighted the need to develop the ID to prevent the spread of falsified information.

According to the report, any user attempting to spread rumors or cause chaos in the metaverse sector will face potential action. The regulators will use the ID to track users engaging in susceptible activities on the metaverse field.

Significance of Digital ID

Interestingly the proposed digital ID has similar characteristics to the Chinese law enforcement tool social credit system. Launched in 2019, the social credit system has supported the authority to establish a record that tracks the compliance level of an individual or entity.

Social credit has proven helpful for many years by assisting regulators in controlling crime. A few years ago, the social credit platform enabled the authority to stop law offenders from purchasing air tickets worth 17.5 million. Consecutively the social credit assisted the regulators in arresting criminals attempting to buy train tickets totaling 5.5 million.

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Speaking at an event hosted by International Telecommunication Union (ITU), the China Mobile team presented the proposal to launch the digital ID. During the event, a metaverse focus group agreed to provide valuable input concerning the proposal in October.

The metaverse team will examine the proposal’s suitability in the upcoming meeting through a voting process. If the participants vote for the China Mobile proposal, other key players in the metaverse sector, including telcos and tech companies, will support the ITU in developing new measures.

Challenges Facing Metaverse Sector

An earlier report observed that privacy, ownership, and control were the main challenges affecting the metaverse industry. The attempt to safeguard the user in the metaverse sector has inspired most Chinese tech and crypto companies to invest in extensive studies and formulate necessary proposals.

Reflecting on the POLITICO report, it was observed that the Chinese proposal on ways to improve the metaverse sector has surpassed the submissions made in the US and UK. Besides conducting metaverse-based research, tech industrial heavyweights are inking strategic partnerships to strengthen the Web3 experiences.

In July, Mcdonald’s partnered with The Sandbox group to launch McNuggets Land. At that time, it was noted that over 400 companies, including Gucci, and Warner Music Group, had formed alliances with Web3 firms.

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In an interview with POLITICO, one of the ITU attendees stated that China was seeking to establish metaverse standards. The participant labeled China Mobile’s proposal as playing a long game in the metaverse sector.

However, the contributor expressed concern about the features of the ID, which will gather user identities and monitor critical activities. He demanded the government state the type of immersive world it sought to establish.

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Kimberly Crain

Kimberly Crain is a seasoned crypto trader and writer, offering valuable insights into the digital asset market. With expertise in trading strategies and a passion for blockchain technology, her concise and informative articles empower readers to navigate the evolving world of cryptocurrencies.

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