Rishi Sunak’s ‘vanity project’ NFT for UK has been quietly shut down a year after it was announced

The government has acknowledged that Rishi Sunak’s plans to launch an “NFT for Britain” have been quietly withdrawn – months after officials pushed for it. I that he was not killed.

Last April, then Chancellor Mr. Sunak said that the Treasury would pick up on the then-popular NFT craze with numerous brands and celebrities launching crypto art collections.

At the time, the Treasury said Mr Sunak had “asked the Royal Mint to create an NFT” to be released by the summer to “demonstrate the visionary approach we are committed to selling cryptoassets in the UK.” .

The project was never launched and was not updated for several months as interest in NFT faded outside of a small group of crypto enthusiasts. Fraud and scams in the industry are also widespread, with a number of high-profile incidents causing NFT and crypto holders to lose their funds.

A guide to digital tokens known as NFTs

NFTs – or non-fungible tokens – are digital tokens that use blockchain technology to publicly record ownership rights, similar to cryptocurrencies like bitcoin.

However, unlike Bitcoin, NFTs are “unique” in that there is only one token of each type. The most common form of NFT is associated with works of art such as images, videos, or music.

While proponents often associate it with owning the related work of art, owning an NFT doesn’t really mean you own the copyright or ownership of the asset.

Critics of NFTs say they have little intrinsic value and the industry is infested with unscrupulous players and scammers, leading to a significant drop in interest.

Officials insisted in October I that it was not true to report that the Britcoin project was on hold and that updates would be received “in due course” while the Royal Mint said it was “continuing to develop our first NFT range”.

However, following a parliamentary question on Monday, the ministers acknowledged that the project had indeed been abandoned.

Conservative Minister Andrew Griffith said: “In agreement with Her Majesty’s Treasury, the Royal Mint is not currently proceeding with the launch of a non-fungible token, but will follow up on the proposal.”

Officials insist that taxpayers’ money was not wasted as the Royal Mint took over the costs, but the Royal Mint is wholly owned by the Treasury and profits go to the Treasury.

The question was asked by Harriet Baldwin, chairman of the Treasury Select Committee. She told the BBC there was “not much evidence” that anyone “should put their money into these speculative tokens unless they’re willing to lose all their money”, adding: “Maybe the Royal Monetary yard, so this decision was made during consultations.” with the Treasury.

Critics of the plan, including Shadow Chancellor Rachel Reeves, had previously dismissed the move as a conceited project by Silicon Valley resident Mr Sunak, who at the time argued that the UK could become “a global center for cryptoasset technology.”

The Treasury and the Royal Mint have reached out for comment.

The Bank of England may support the digital pound

NFT is just one of many crypto projects launched by Sunak as Chancellor, who previously lived in the heart of Silicon Valley and held a US green card until last year.

Discussions are currently underway on a separate flagship plan to launch a new form of digital currency, a central bank digital currency (CBDC) called “Britcoin”.

In February, Chancellor Jeremy Hunt acknowledged that the technology would not be ready before the end of the decade, but said work on the digital currency was ongoing with the Bank of England.

“A digital pound issued and backed by the Bank of England could be the new secure, affordable and easy-to-use payment method,” he said.

Skeptics point out that cashless transactions in pounds already make up the vast majority of purchases in the UK and many of the benefits advertised by the Treasury have already become a reality for millions of people using online banking applications based on applications that do not need a “digital pound”. required.”

Under the plans, the British will only be allowed to hold up to £20,000 in British coins.