The United Kingdom Treasury Department has disclosed that it would not carry out its initial plans to produce a non-fungible token (NFT). These plans have been in the works for some time.
According to a proposal submitted in April 2022 by Rishi Sunak, who was serving as Chancellor of the Exchequer at the time and is now the Prime Minister of the United Kingdom, the plans were a component of a larger attempt to make the United Kingdom a worldwide crypto hub.
However, recent developments (1) have made it possible to state that the Royal Mint will not be moving forward with the proposals above at this time.
Andrew Griffith, a minister in the Treasury Department, has stated that the plan will continue to be evaluated despite this.
The UK Treasury Department made the decision due to economic reasons
Harriet Baldwin, the chairwoman of the Treasury Select Committee, issued a statement in which she mentioned the widespread economic unpredictability across the cryptocurrency industry as one of the reasons why the NFT plans appear to have been abruptly scrapped.
According to a report by the BBC, Baldwin is of the opinion that the current state of the economy was a significant factor in the decision to cancel the launch of the NFT collection.
In addition, despite the fact that the Treasury Department of the United Kingdom and the Royal Mint has already come to this conclusion, the government will investigate whether or not there is still a valid purpose for issuing NFTs. Baldwin said:
“We are yet to see a great deal of proof that our clients should be placing their cash in these risky tokens unless they’re willing to part with all of their money. If they are not prepared to lose all of their money, then we do not recommend that they do so.
In the meantime, it is important to note that the United Kingdom’s most recent choice has made it a completely different horse than before.
This choice was made at a time when governments in other countries are beginning to align themselves with NFTs and other Web3 technology. Japan is an example of one of these nations. The East Asian nation made the announcement in October that it intended to invest in its digitalization through the use of NFTs and metaverse services.
In January, China also launched a market for non-traditional assets and digital assets, following in the footsteps of other countries. With the stringent crypto restrictions that are in place in China, the country’s decision was especially spectacular given those limitations.
Featured Image from (1.1)