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China’s Social Credit System Enters the Metaverse, Proposals Suggest

China Mobile, a state-owned telecommunications firm, has proposed the creation of a digital ID system for users in virtual worlds and the Metaverse. This system aims to link a person’s “natural” and “social” characteristics to their digital identity and store this information permanently.

The purpose of this digital ID system is to maintain order and safety within virtual worlds by identifying and penalizing users who engage in disruptive or illegal activities in these online spaces. This proposed system would involve collecting and storing personal information and identifiable traits, including a person’s occupation, with the potential for this data to be permanently stored and shared with authorities.

On July 5th, China Mobile presented these proposals as part of discussions with a focus group on the Metaverse organized by the United Nations’ International Telecommunication Union (ITU). The ITU’s metaverse group aims to develop standards for metaverse services. The proposals will be discussed further in October, and if approved, they could have a significant impact on telecommunications and tech companies operating in the metaverse.

China’s social credit system has faced criticism for its potential to restrict individuals from using certain services based on their behaviour, raising concerns about privacy, surveillance, and individual freedoms. Some have also expressed concerns about the system’s potential to interfere with other nation’s sovereignty.

According to a 2019 report by the Associated Press, authorities prevented individuals with social offences from buying plane tickets a staggering 17.5 million times in 2018. Additionally, another 5.5 million instances saw social offenders prohibited from purchasing train tickets as a punitive measure.

The extension of China’s social credit system into the metaverse raises complex ethical, privacy, and governance questions, especially regarding the potential for control and censorship in virtual spaces. It will likely continue to be a subject of debate and scrutiny both within and outside of China as discussions progress.