The U.K. government on Monday announced plans to mint its own non-fungible token, as part of a push toward becoming a “world leader” in the cryptocurrency space.
Finance Minister Rishi Sunak has asked the Royal Mint — the government-owned company responsible for minting coins for the U.K. — to create and issue the NFT “by the summer,” City Minister John Glen said at a fintech event in London. “There will be more details available very soon,” he added.
NFTs are digital assets that represent ownership of a virtual item like an artwork or video game avatar using blockchain, the technology that underpins many cryptocurrencies. They’ve gained a lot of traction over the past year thanks to increased adoption from celebrities and large corporations.
The U.K.’s NFT initiative is part of a broader effort by the government to “lead the way” in crypto, according to Glen. The minister announced a number of steps the U.K. will take to bring digital assets under more regulatory scrutiny, including plans to:
Bring stablecoins within the U.K.’s existing regulations on electronic payments.
Consult on a “world-leading regime” for regulating trade in other cryptocurrencies, including bitcoin.
Ask the Law Commission to consider the legal status of blockchain-based communities known as decentralized autonomous organizations, or DAOs.
Examine the tax treatment of decentralized finance (DeFi) loans and “staking,” which gives crypto users the ability to earn interest on their savings.
Establish a Cryptoasset Engagement Group that will be chaired by ministers and host members from U.K. regulators and crypto businesses.
Explore the application of blockchain technology in issuing debt instruments.
“We shouldn’t be thinking of regulation as a static, rigid thing,” Glen said.
