Ministers are pressing ahead with plans to create a government-backed non-fungible token, despite a crash in crypto prices and key figures from the Treasury who backed the controversial project after leaving their post.
This was confirmed by the Royal Mint Financial news it is still working on creating an NFT – a form of crypto-asset – as part of an effort to present the UK as a crypto-friendly business environment.
In response to a Freedom of Information Act request, the Royal Mint, the official maker of UK coins owned by the Treasury, said the project was “still in the development stage” but “not yet launched”.
The Royal Mint declined to reveal how much the project is costing. The NFT plans are several months behind schedule, and the Treasury had initially promised that the project would be launched by the summer of 2022.
In April, then-Chancellor Rishi Sunak announced plans to have the 1,136-year-old institution create a state-backed NFT to help the UK become a “crypto hub”.
That plan received a boost on October 24 when Sunak, who stepped down as chancellor in July, returned to Downing Street as prime minister.
Crypto bosses had expressed concern that recent political instability, which has seen Britain have three prime ministers in as many months, would damage the plans.
Liz Truss’s government said last month it was still pushing ahead with its crypto hub strategy, but the July departure of former City minister John Glen, a key proponent of the plans, heightened those concerns.
Businesses also noted the slow rate of change in regulatory policy from the Financial Conduct Authority as a barrier to the crypto hub ambition.
The crypto sector has suffered a dramatic market crash this year, leading to more than 4,000 cuts. Bitcoin was valued at $19,285 on October 25, down 60% year-to-date.
NFT sales have also fallen sharply. Just $3.4 billion in sales occurred in the third quarter of 2022, down from $8.4 billion in the previous quarter and $12.5 billion in the first quarter of the year, the market’s peak, according to research from DappRadar.
Sunak’s potential rise to the top job was described as a “silver lining” by Ian Taylor, head of trade association CryptoUK.
The Ministry of Finance did not respond to requests for comment.
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To contact the author of this story with feedback or news, email Alex Daniel
