The chair of the Treasury Select Committee thinks the speculative nature of crypto assets like NFTs led the Treasury to halt plans for the launch.
The United Kingdom has dropped its plans to launch a government-backed non-fungible token (NFT) aimed at enhancing the country’s approach to crypto assets.
Andrew Griffith, Economic Secretary of the Treasury, disclosed to Parliament that the Royal Mint, tasked with creating the NFT, would not proceed with the plan but would keep the proposal under review.
HM Treasury Cancels NFT Plans
Recall that Rishi Sunak, the UK’s Prime Minister and former Chancellor of the Exchequer, asked the Royal Mint to create the NFT in April 2022. The token was scheduled to be released by the summer of that year.
The Royal Mint is the official supplier of the UK’s coins. As the oldest company in t
he nation, it is a limited company wholly owned by His Majesty’s Treasury.
The NFT launch was part of the ministry’s “forward-looking approach” to crypto, supporting its plans to make the UK a global hub for digital asset investments and technology. However, the Royal Mint faced delays and could not meet the release deadline.
Griffith’s disclosure was in response to a question Chair of the Treasury Select Committee Harriet Baldwin asked in Parliament about the NFT issuance being a part of Sunak’s policy.
“In consultation with HM Treasury, the Royal Mint is not proceeding with the launch of a Non-Fungible Token at this time but will keep this proposal under review,” Griffith said.
Constituents Could Lose all Their Money: Baldwin
Further, a BBC report quoted Baldwin, saying that the “NFT for Britain” project could lead constituents of the UK to lose all their money due to the speculative nature of such tokens.
“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. So perhaps that is why the Royal Mint has made this decision in conjunction with the Treasury,” she said.