The UK Treasury Department has revealed it will no longer be going forward with its initial plans of launching a non-fungible token. According to an April 2022 proposal, which was put forward by then Chancellor of the Exchequer and current prime minister Rishi Sunak, the plans were part of a broader effort to make the UK a global crypto hub. At the time, Coinspeaker also reported that the British government was working on bringing stablecoins within its regulatory framework. This was to ensure that stablecoins may be used as a form of payment.
However, new updates can confirm that the Royal Mint will not be pursuing the said plans any further at this moment. Nonetheless, the proposal will remain under review, according to Treasury minister Andrew Griffith.
Economic Reasons Underlie Decision of UK Treasury Department
In a statement about reasons why the NFT plans appear to have come to a sudden halt, Chair of the Treasury Select Committee Harriet Baldwin cited the economic uncertainty across the cryptocurrency sector. According to a BBC report, Baldwin believes that the economic environment has played a major role in shutting down the NFT collection launch. And while the decision has been jointly made by the Royal Mint and the UK Treasury Department, the government will seek to establish whether issuing an NFT remains a reasonable cause. Baldwin said:
“We have not yet seen a lot of evidence that our constituents should be putting their money in these speculative tokens unless they are prepared to lose all their money.”
Meanwhile, it might be worth noting that UK’s recent decision has made it a horse of different color. The decision comes at a time when other nations are beginning to align with NFTs and other Web3 technologies. One such country is Japan. In October, the East Asian country announced plans to invest in its digital transformation through NFTs and metaverse services. China also followed suit in January by launching an NFT and digital asset marketplace. China’s move was particularly impressive given the strict crypto regulations that are in place in the country.
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