The UK government has abandoned plans to issue a non-fungible token (NFT), which was first proposed in April 2022 and was scheduled to be issued in June 2022.
UK Treasury Economic Secretary Andrew Griffith saying The Royal Mint had canceled plans to launch a government-backed token.
Griffith’s statement was in response to a question from Harriet Baldwin, chair of the Treasury Select Committee, who asked if there was still a plan for the Royal Mint to issue an NFT.
“In consultation with HM Treasury, the Royal Mint is not proceeding with a non-fungible token launch at this time, but will keep this proposal under review.”
Andrew Griffith, UK Economic Secretary to the Treasury
In April 2022, the Royal Mint was asked by former Chancellor of the Exchequer, Rishi Sunak, the current Prime Minister of the United Kingdom, to create an NFT to circulate in the summer of 2022. The proposed creation of NFT was part of Sunak’s plans to make make Britain a center for crypto innovation and development.
Read More: Cryptoverse Sees Rishi Sunak’s Plans To Make The UK A Crypto Hub As A ‘Late Call’
Meanwhile, a statement by Baldwin in response to Griffith’s response, quoted in a BBC report, said:
“We haven’t seen much evidence yet that our constituents should put their money into these speculative tokens unless they are prepared to lose all their money. So maybe that’s why the Royal Mint has made this decision in conjunction with the Treasury.”
The UK recently raised concerns about the NFT sector, with lawmakers noting the absence of a regulatory framework for NFTs. In November 2022, lawmakers launched an investigation into the benefits and risks of non-fungible tokens.
Additionally, the UK’s advertising regulator, the Advertising Standards Authority (ASA), banned an NFT ad from Crypto.com and Turtle United in December 2022, claiming the promotions were misleading.
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