- UK Chancellor commissions the Royal Mint to release an official NFT.
- The U.K. government outlines plans to regulate the crypto sector.
- The United Kingdom sets forth to be a global crypto hub.
Today, the United Kingdom announced plans to transform itself into a “global crypto-asset technology hub.” The government also revealed its intentions to create a non-fungible token (NFT) to show its commitment to a prospective approach to cryptocurrency technology and investment.
U.K. government`s Royal Mint to create an NFT
The Chancellor of the Exchequer, Rishi Sunak, has asked the Royal Mint, England’s mint and coin producer, to create an NFT in the coming months. Speaking at the Innovate Finance Global Finance Summit on Tuesday, Economic Secretary to the Treasury John Glen said that Chancellor Rishi Sunak had instructed the Royal Mint to develop an NFT by summer.
Her Majesty’s treasury is the department of the U.K. government responsible for developing and executing the government’s public finance policy and economic policy. Her Majesty’s Treasury, commonly known as the Exchequer or the Treasury (H.M. Treasury), is sometimes referred to as “the Department of Finance.”
Glen stated that The NFT was a sign of a forward-thinking attitude. Furthermore, the government intends to establish crypto security, claiming that additional information will be provided as soon as possible. He also stated that the U.K.’s government sees tremendous potential in cryptocurrencies and wants England to become a global center for the industry.
The U.K. government has also taken steps to regulate stablecoins so that they can translate into a recognized form of payment in the country.
Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.— HM Treasury (@hmtreasury) April 4, 2022
This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK. pic.twitter.com/cd0tiailBK
The U.K. government is pushing to demonstrate its openness to cryptocurrency, including digital tokens. The NFT will be part of a larger plan to help develop financial technology and crypto. The government of the United Kingdom wants to establish a “changing regulatory landscape” that welcomes innovation.
The United Kingdom sets forth to be a global crypto hub
The Financial Conduct Authority has already conducted a regulatory sandbox, and it will be conducting the first in a series of policy “crypto-sprints” this May. The government is also establishing a Cryptoasset Engagement Group that will include members from the FCA, Bank of England, and businesses, with at least eight meetings per year.
Glen also announced that the government is working on a framework for the legal status of decentralized autonomous organizations. The objective is to keep the U.K. at the forefront of legal progress; Glen stated, “just as [the U.K.] did with limited liability companies in the 19th century,” without providing further information about what that framework will look like.
Glen was well aware of the risks associated with cryptos, such as fraud, bootlegging, and environmental damage. However, he viewed NFTs and similar projects as a chance to get “in on the ground floor” and prosper if cryptocurrencies became popular.
Chancellor of the Exchequer, Rishi Sunak, said: “It’s my ambition to make the UK a global hub for cryptoasset technology. The measures we’ve outlined today will help ensure firms can invest, innovate, and scale-up in this country. We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively, we can give them the confidence they need to think and invest long-term. This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.“
Critics will be unenthused by the NFT, which they may see as producing artificial scarcity, increasing pollution, or otherwise wasting resources. It will, nevertheless, demonstrate the U.K. government’s eagerness to court the cryptocurrency sector. The nation is moving quickly to restore its reputation as a financial center in the digital world.