UK government clarifies position on Royal Mint’s NFT launch

UK stepping ahead to implement new regulations on digital asset management

The United Kingdom government clarifies its position on the launch of a non-fungible token (NFT) with the country’s mint. Previously after the rise of Rishi Sunak to the Prime Minister of the UK, it was speculated that the minting process will be fast-paced. 

An NFT is a digital asset that is related to real objects like flowers, art, music, or anything which exists in the world. It is based on blockchain technology and assigned unique identification codes. Its worth depends on demand generation because the more the commodity is in demand the higher its value. 

On Monday, Treasury minister Andrew Griffith answered the question regarding the NFT launch by Harriett Baldwin. In his response to Baldwin, the Treasury minister informed that the Royal Mint is not going to launch NFT as of now but will keep the launch under review. For those who are not aware, the Royal Mint is a government-owned mint that produces coins. 

In 2022, the then United Kingdom Treasury, Rishi Sunak, became Prime Minister of the United Kingdom. He always advocated more crypto-friendly laws in the country and wanted to make the UK a crypto-friendly tech hub. After this, it was speculated that the Royal Mint will soon launch its non-fungible token but now it seems the launch is too far. Additionally, he said that stablecoins should be brought under the regulation and used in a recognized payment system in the United Kingdom. After this announcement, he faced sharp criticisms from many people because the decision came after the rise in energy bills which forced households to face extra burden on their heads.

Various governments worldwide are currently facing problems to launch comprehensive crypto regulation. In December 2022 it was reported that China is set to launch its first state-backed NFT trading. After this news, Beijing hosted a marketplace opening event on 1 January. The platform is operated by three state-owned and commercial organizations, Huban digital, China Technology Exchange, and Art Exhibitions China.  

The news from the United Kingdom Treasury for not planning to issue an NFT is a shocker for those who are planning to invest in NFTs. However, the Treasury has denied the launch of the NFT but it is sure that we are not going to witness the NFT launch very soon. 

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