The United Kingdom’s finance minister, Rishi Sunak, has asked the Royal Mint to make and issue non-fungible tokens by the summer. On Monday, the city minister, John Glen, stated that the UK government wants Britain to take the lead in the cryptocurrency space. He also announced the UK’s steps to regulate these digital assets properly. The UK is well-known for taking cryptocurrency seriously, and so its plans for the Royal Mint NFT are well anticipated.
Her Majesty’s Treasury Announces the Royal Mint NFT
On the 4th of April, the finance minister of the United Kingdom, Rishi Sunak, gave the Royal Mint the task of creating an NFT. According to him, the non-fungible tokens would be ‘an emblem of the forward-looking approach.’ Her Majesty’s Treasury has announced that the NFT would lead the country into blockchains and cryptocurrencies.
This project was revealed in a speech by the economic secretary to the treasury, John Glen. He added ‘There will be more details available very soon at the summit. The purpose of the Royal Mint NFT will be to make the UK a global hub for cryptocurrency.
Although other countries have issued NFTs before, including Ukraine, the world seems to be taking UK’s announcement differently. The main reason is that it’s coming from the British government, a leading country in the world. It would also be officially done by the government agency in charge of printing the money in Britain.
This doesn’t mean that the UK will be replacing the pound soon. There are no clear-cut details in the announcement, making some people speculate that it might just be a PR stunt. But since it was stated that the NFT would be launched by summer, enthusiasts can quickly expect it by then.
The Government Announces Plans to Regulate the NFT
The UK government has announced plans to introduce different measures to regulate the NFTs and cryptocurrency sector. This is because the digital assets space is known for being widely unregulated. Some of the plans include:
- Ask a ‘world-leading regime’ for consultations on regulating trade in bitcoin and other cryptocurrencies.
- Introduce stablecoins to the existing regulations on electronic payments in the United Kingdom.
- Assess the task rules and treatments of DeFi (decentralized finance) loans and staking. This will allow cryptocurrency users to earn interest on their savings.
- Request for the Law Commission to keep the legal status of decentralized autonomic organizations (DAOs) in mind. These are called Blockchain-based communities.
- Look at the chances of applying Blockchain technology in the issue of debt instruments.
- Set up a Cryptoasset Engagement Group, with ministers from UK regulators and host members from crypto businesses on the team.
When announcing the regulations, John Glen stated that the UK ‘shouldn’t be thinking of regulation as a static, rigid thing. Instead, we (the UK) should be thinking about regulatory ‘code’ – like computer code – which we refine and rewrite when we need to.’
He also added that the government is expanding its gaze to look at Web3 and other aspects of cryptocurrency. Web3 is well-known as a movement that wants to create an internet based on Blockchain technology. He specifically stated, ‘No one knows for sure yet how Web3 will look. But, there’s every chance that Blockchain will be integral to its development.’
He added, ‘We want this country to be there leading from the front, seeking out the greatest economic opportunities.’
The UK is Known for Taking Cryptocurrency Seriously
It seems like the United Kingdom is doing a great job taking the NFT and cryptocurrency space seriously. John Glen added that the treasury would request a legal task force to keep the legal status of DAOs in mind. He also stated that the government is working on different things concerning cryptocurrency.
Mr. Sunak stated at the summit, ‘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.’