UK government scraps Royal NFT collection plans

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UK government scraps Royal NFT collection plans

The proposal by the UK government to launch non-fungible tokens (NFTs) through the Royal Mint has been canceled.

Government-backed NFT collection was just a dream

The announcement of the NFT collection was made in April last year, and it was welcomed with enthusiasm by then-Chancellor Rishi Sunak, who has since become the Prime Minister.

In that same timeframe, the British government was taking steps towards regulating the stablecoin market by including them in an authorized payment system. Nonetheless, the proposal to launch NFTs has not been implemented, as per a statement by the UK’s economic secretary, Andrew Griffith.

The suggestion, however, will still be subject to evaluation. Nevertheless, the Chair of the Treasury Select Committee, Harriet Baldwin, has voiced her skepticism towards NFTs, stating:

“Unless they are willing to lose their entire investment, we have yet to see sufficient evidence to persuade our constituents to invest in these speculative tokens.”

Moreover, Baldwin highlighted the existing uncertainty prevalent in the industry, which is one of the reasons that prevented the launch of the NFT collection. Additionally, the Treasury had announced that it would examine the possibility of adjusting the tax structure to promote the development of the cryptocurrency market. However, given the current uncertainty within the industry, any new initiatives will not be implemented immediately.

Backed by gold?

The Royal Mint had intended to introduce its collection of NFTs supported by gold, a measure that could have established the UK as a more alluring hub for crypto innovation. Nonetheless, with the government’s decision to abandon the proposal, the future of NFTs in the UK has become uncertain.

The choice to abort the NFT launch plan has dismayed numerous individuals in the industry who viewed the move as a crucial step towards expanding the adoption of NFTs in the UK. Several opines that the government’s decision was influenced by the recent regulatory clampdown on cryptocurrencies worldwide.

Not in the government’s best interest

The UK government’s initiative to regulate the stablecoin market was perceived as a measure toward broader acceptance of cryptocurrencies in the nation. Conversely, the stablecoin market presents a direct threat to the upcoming Central Bank Digital Currencies (CBDC) planned by the UK and other nations, such as China and the United States.

The UK’s decision to scrap the plan to launch NFTs has created uncertainty about the future of digital assets in the country. This move has raised concerns among industry experts about the UK’s ability to compete as a leader in the cryptocurrency market.

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