The United Kingdom announced that it would create a government-backed nonfungible token, or NFT.
The adoption of a U.K.-backed NFT was announced by Economic Secretary to the Treasury John Glen at a financial technology conference on Monday. The announcement appears to be a precursor to the U.K. establishing regulations for the crypto market.
“I am announcing today that [British Finance Minister Rishi Sunak] has asked the Royal Mint to create a non-fungible token — an NFT to be issued by the Summer,” Glen announced, according to the Independent. “An emblem of the forward-looking approach we are determined to take.”
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The British deputy finance minister also said the NFT’s launch would be part of a drive to make the U.K. a “global cryptoasset hub,” according to Sky News. He also said there would be “more details available very soon.”
The U.K. is considered an outlier in Europe because it lacks any established crypto regulations. However, Sunak is expected to announce a new regulatory regime in the coming weeks, according to CNBC.
The United States has begun taking action to start regulating cryptocurrency in more meaningful ways. Congress is currently considering legislation to establish a “stablecoin,” a form of cryptocurrency that derives value from physical money. President Joe Biden also signed an executive order on March 9 asking federal agencies to determine the particular risks and benefits of cryptocurrency and NFTs.
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NFTs are digital copies of an image or media uniquely coded in the blockchain. This allows individuals to claim sole ownership of the image, making it a valuable collectible in select markets.