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Chancellor asks Royal Mint to create NFT

Chancellor asks Royal Mint to create NFT

The UK government has commissioned the Royal Mint to create an NFT as part of a push to make the country a "global hub for cryptoasset technology".

Chancellor of the Exchequer Rishi Sunak has asked for the NFT to be created by the summer, says the Treasury in a tweet, adding: "This decision shows the forward looking approach we are determined to take towards cryptoassets in the UK."

NFTs have exploded in popularity over the last year with many reaching multi-million dollar valuations. However, the sector has also garnered a reputation for attracting speculators, posers and scammers.

The announcement attracted thousands of replies and quote tweets, the majority of them less than positive.

"Can't wait until the treasury gets scammed out of all it's Royal Apes," wrote one Tweeter. "I feel like the only explanation for the way the U.K. is being governed is that we’re actually in a sim and a particularly malicious programmer is running an experiment to see how far they can wind us up," offered another.

Elsewhere, the Treasury set out plans to bring stablecoins within regulation paving their way for use in the UK as a recognised form of payment.

The government will also explore the use DLT in financial markets, legislating to create a sandbox where firms can test the technology. The government further confirmed that it will initiate a research programme to explore the feasibility and potential benefits of using DLT for sovereign debt instruments.

Finally, it will review how DeFi loans - where holders of cryptoassets lend them out for a return - are treated for tax purposes.

Says Sunak: "It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to 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."

Comments: (1)

A Finextra member
A Finextra member 12 April, 2022, 11:05Be the first to give this comment the thumbs up 0 likes

Informative Article!