Quick take:
- The UK government has made a giant step in its crypto push.
- The Chancellor of the Exchequer has asked the Royal Mint to issue an NFT by the Summer.
- The UK treasury said the move showed a forward-looking approach to crypto.
The UK Chancellor of the Exchequer, Rishi Sunak has asked the Royal Mint to issue a non-fungible token (NFT) by the summer. Announcing the news Monday on Twitter, the UK treasury tweeted:
“This decision shows the forward-looking approach we are determined to take towards [crypto assets] in the UK.”
The announcement emerged during Monday’s economic update by the treasury. As reported on the government website under the keynote speech by Economic Secretary to the Treasury, John Glen said:
“There’s a genuine opportunity to build on our strengths in fintech, seize the capitalist energy which has already made UK financial services what it is… and use it to unleash the potential of crypto-technologies.”
More details about the NFT are expected in due course.
The UK treasury has become the latest government organisation to lean on fintech and related digital financial technologies amid the global adoption of crypto and digital tokens.
Unlike China and various Asian countries that have banned crypto, the UK government seems to be taking a measured approach, much more like India and Israel, which have opted to explore regulatory options.
According to Glen, the government is looking to create a “dynamic regulatory landscape” that embraces crypto. It is already exploring ways in which it can make stablecoins legal tenders, integrating them into its payments structure.
Furthermore, the UK treasury is looking at options where decentralised autonomous organisations (DAOs) could be integrated into the country’s corporate structure, whilst also removing bottlenecks for funds that invest in crypto assets.
The Financial Conduct Authority, the UK’s financial and capital markets regulator is already planning to draw a series of policies that will govern crypto and other digital assets this May.
The government has also constituted a group dubbed, the Cryptoasset Engagement Group, made of members of the FCA, the BoE (Bank of England) and the private sector to help steer the creation of the fitting crypto framework.
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