The United Kingdom government has announced intentions to issue its own non-fungible token as part of a quest to become a “world leader” in the cryptocurrency space.
According to a government minister, UK Finance Minister Rishi Sunak has asked the Royal Mint to create and issue the NFT “by the summer.”
City Minister John Glen stated at a fintech event in London that Finance Minister Rishi Sunak has urged the Royal Mint — the government-owned firm responsible for minting coins in the United Kingdom — to create and issue the NFT “by the summer,” “There will be more details available very soon,” he added.
According to Glen, the program is part of a larger government attempt to “lead the way” in crypto. The minister stated a number of initiatives the United Kingdom will take to increase regulatory oversight of digital assets, including intentions to: Bring certain stablecoins into the U.K. payments framework so that stablecoin issuers and service providers can “operate and grow in the U.K.”
Consult on establishing a “world-leading regime” for regulating the trade of other cryptocurrencies, such as bitcoin.
Request that the Law Commission consider the legal position of decentralized autonomous organizations, or DAOs, which are blockchain-based communities.
Examine how decentralized finance (DeFi) loans and “staking,” which allows crypto users to earn interest on their funds, are taxed.
Create a Cryptoasset Engagement Group, which will be led by ministers and include representatives from UK authorities and crypto companies.
“We shouldn’t be thinking of regulation as a static, rigid thing,” Glen said. “Instead, we should be thinking in terms of regulatory ‘code’ — like computer code — which we refine and rewrite when we need to.”
According to CNBC, the government previously announced plans to develop a regulatory framework for cryptoassets and stablecoins.
Stablecoins, or cryptocurrencies whose value is derived from sovereign currencies such as the US dollar, are a rapidly rising but divisive phenomenon in the crypto industry.
Tether, the largest stablecoin in the world, with a circulating supply of over $80 billion. However, it has been chastised for the lack of transparency surrounding the token’s reserves.
Glen said that the government was “widening” its scope to include other areas of crypto, such as Web3, a movement that advocates for a more decentralized internet based on blockchain technology.
