Finance & Economics

UK Government Abandons Sunak’s NFT Plan

The UK government has decided not to implement the plan of the country’s Prime Minister Rishi Sunak, which provides for the Royal Mint to commit to creating an interchangeable token.

UK Government Abandons Sunak's NFT Plan

Source: Pixabay.com

Rishi Sunak announced the idea of creating an NFT in April 2022. At that time he held the position of Chancellor of the Exchequer. Then the Ministry of Finance of the United Kingdom posted a publication on its Twitter page in which it stated that Rishi Sunak’s proposal represents a promising approach that the department is ready to implement with respect to assets existing in the form of cryptocurrencies.

Over time, the Ministry’s position has changed. UK Economy Minister Andrew Griffith said that in agreement with Her Majesty’s Treasury, the Royal Mint is not launching an interchangeable token. He also noted that this proposal will remain under consideration.

Labour’s shadow City Minister Tulip Siddiq expressed satisfaction with the fact that the Royal Mint forced the Conservatives to abandon the implementation of this initiative. He also noted that Labor has been calling for several months to fix the rejection of this crypto trick.

Harriet Baldwin, chairman of the Treasury Select Committee, said that so far no evidence has been found that investing in tokens represents a perspective financial solution. She also noted that there are huge risks in the case of tokens.

Last year’s Treasury initiative was announced against the background of a sharp increase in the popularity of NFT. Then the cost of many interchangeable tokens exceeded the $1 million mark. But after a short period of time, the market began to move in the opposite direction. This state of affairs is due to the general decline in the cryptocurrency market and the increased interest in tokens from speculators and scammers.

Many cryptocurrencies that are used to purchase and self-service NFT have fallen in price. The cost of bitcoin over the past year has shown a decrease of more than 35%.

As Chancellor of the Treasury, Rishi Sunak called on the UK government to take measures to intensify the use of cryptocurrencies. In 2021, he created a task force that studied the prospects of creating a central bank digital currency in the United Kingdom. Rishi Sunak described these intentions as a plan aimed at creating a more open, environmentally friendly, and advanced financial services sector.

Digital tokens appeared in 2014, they can be characterized as certificates of ownership of virtual or physical assets. Tokens can be purchased using traditional currency or cryptocurrency.

As we have reported earlier, CryptoUK Calls On Government to Intervene Over Bank Restrictions.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.