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The UK Royal Mint to Start Working on NFTs

Rishi Sunak, Chancellor in the UK, has ordered the Royal Mint to create a government-backed NFT for trading. The Chancellor expects the NFTs by the Summer as the government examines new possibilities to use blockchain. 

What does the Government wish to achieve with this new political action? And what can the impact of the news be on the NFT and blockchain market?

More Information About the Project

One of the hottest topics in blockchain technology right now is the use of non-fungible tokens (NFTs). Contrary to popular belief, owning non-functional tangibles (NFTs) does not automatically subject you to copyright rules. However, combining the concepts of “property” and “digital asset” is a good idea in an increasingly virtual world.

Bored Ape Yacht Club’s caricatures of primates are among the most popular NFTs. We observed continued market growth in 2022, which was a great success in 2021.

The Royal Mint has announced that it will begin selling a variety of NFTs starting in Summer. The backers wish to make the Royal Mint “one of the world’s leading providers of premium collectibles.” 

The Mint has yet to reveal the inspiration for its NFTs, which usually derive from digital artworks. As the country’s primary source of coins, they may rely on specific coin designs. We’ll have to wait for more information shortly to find out more. 

Interestingly, we do not know which payments method will allow the market to buy these NFTs. While the apparent expectation would be the use of the British Pound, we cannot exclude the integration of stablecoins. 

The Role of the Royal Mint in the UK

Government-owned, the Royal Mint makes coins for the UK. The Royal Mint Limited is the legal name of the mint. It is a limited company owned by Her Majesty’s Treasury with the right to manage coinage in the UK. 

Over time, the Royal Mint has become an advanced manufacturer that the Government controls. Over the past 1,100 years, the Mint has changed together with the country it serves. The Mint has seen wars, crises, and economic booms through technological progress.

HM Treasury acquired full ownership of the Royal Mint in 2009 after recommendations on its privatization. The Royal Mint had previously been an executive government body.

A Part of a Bigger Strategy

John Glen, Economic Secretary to the Treasury and City Minister, provided the press with more details

Glen believes the NFT program is part of a larger government push to “lead the way” in crypto. According to the Minister, the UK government is taking actions to bring digital assets under greater regulatory scrutiny.

Among the matters he discussed, we should mention the increasing importance of stablecoins in the UK economy. We should also expect to see news on the tax treatment of decentralized finance (DeFi) anytime soon.

The Government wishes to transform the UK into a more crypto-friendly hub. It is not surprising that policymakers are working on a stablecoin regulation bill in this context.

Stablecoins are increasing in popularity for B2B payments. There are many advantages of using a stablecoin instead of the British pound (or other fiat currencies). For example, transferring stablecoins can be faster and cheaper than relying on a bank transfer.

UK policymakers have known for a long time that the time for crypto regulation would have come sooner or later. Several authorities in the country have often acted independently to enforce existing laws. However, applying outdated rules to a modern framework is far from efficient.

UK NFT – Key Takeaways

The Twitter announcement of HM Treasury announcing the NFT move triggered several reactions on the market. The account mentioned the creation of “an NFT,” so we may not see an entire government-backed collection. 

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The minting of a single NFT may represent a mere experiment for the UK government. If the operation is successful, we may see more mintings in the future.

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