Yes, you read that correctly. The Chancellor of the Exchequer has asked the Royal Mint to create an NFT by the summer, in a bid to show Britain has a “forward-looking approach”.
NFTs, or non-fungible tokens, are unique digital certificates that are registered on a digital ledger known as a blockchain and record ownership of artwork or a collectible. That’s the mandatory explainer bit.
And now, Rishi Sunak has asked the 1,136-year-old Royal Mint to create an NFT so it can be issued by the summer. It’s not exactly clear what image or depiction the NFT will take. All that was provided was this Tweet below.
Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.
This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK. pic.twitter.com/cd0tiailBK
— HM Treasury (@hmtreasury) April 4, 2022
Details aside, it’s quite a moment in the history of this digital asset and will no doubt be seen as a moment of mild triumph for the crypto community. To think of such a scenario just a few years ago would likely have been scoffed at.
What no doubt may have helped sway the Chancellor’s mind – scratch that, the main thing that would have convinced the Chancellor – is no doubt the big bucks that NFTs are being sold for. Many of them, especially those with some clout or notoriety behind them, which this one will certainly have, sell for millions.
One report estimates that the NFT market was worth a whopping £13 billion ($17 billion) last year.
That all said, this announcement has come at a time when the cost of living is being squeezed for millions across the country, and gas prices have taken a sharp increase. Such a move will no doubt be seen as nothing more than a mere vanity project designed to make Rishi look down with the crypto bros. (Remember the Matt Hancock app, anyone?).
What’s more the NFT marketplace has been prone to scams, which will worry some. Perhaps more importantly, though, whilst this does signify a mainstream moment for NFTs, the appeal of them along with many other digital assets is that they’re precisely out of the reach of governments and held within decentralised systems.
The crypto community will no doubt want it to stay that way and will likely be keeping a watchful eye on the government’s entrance into the NFT marketplace.
