On Monday morning, April 4th, the UK's HM Treasury announced via a tweet the creation and subsequent auction of its own and first ever NFT. Coined the Royal Mint NFT, the HM Treasury's initial dive into crypto assets, according to the finance ministry, highlights its "forward-looking approach" in regards to digital collectables and fintech.
It's in line with the recent aims of the UK government to broaden the scope of its internal tech-based economic standing. John Glen, UK Economic Secretary, vies to bring about a "dynamic regulatory landscape" in the area, with recent legislation on the introduction of stablecoins as among its efforts in building out this newfound respect for fintech. The UK government will also be investigating the potential use case of DAOs, that's a Decentralized Autonomous Organization, like MakerDAO.
Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.
— HM Treasury (@hmtreasury) April 4, 2022
This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK. pic.twitter.com/cd0tiailBK
To strengthen this burgeoning landscape over the pond, the UK government is forming its own Cryptoasset Engagement Group, which will be backed by powerhouses like the Bank of England, the Financial Conduct Authority, as well as various businesses in the sector. The Cryptoasset Engagement Group will purportedly meet eight times each year to go over not only the evolution of fintech but also the Uk's standing in its auspices.
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Despite the financial incentive, with a current NFT market valued at over $40 billion with a potential $80 billion price tag by 2025, naysayers are still eyeing the exit signs. From scams to environmental concerns, the realities underscoring crypto mining are far and wide. The reach and engagement of the ballooning crypto asset market have likewise diminished, with Axios' Bradley Dale highlighting the record drop of sales in his now week-old article.
Add these concerns to the volatility inherent in cryptocurrency, with the digital coins of Bitcoin and Ethereum seeing a massive drop in late January, proving that the HM Treasury's newest move into the digital market might not be the most ideal. Still, Glen thinks otherwise, as the risks were taken into consideration well ahead of time, including the environmental issues, citing the play as a potential to get "on the ground floor" of the fintech craze.
Although the forthcoming Royal Mint NFT won't please everyone, it does show signs that the government is willing to think proactively about the potential of digital assets. While most seemed turned off by the opportunity, the UK government is paving its stance well ahead of the curve as new forms of digital commodities become ever apparent, including the likes of digital real estate, Web3 applications, and more.
This article is owned by Tech Times
Written by Ryan Epps
