UK Treasury Abandons Plans for Government-Backed NFTs

UK Treasury Cancels NFT Launch

The UK Treasury has decided not to move forward with the launch of government-backed NFTs. This decision follows discussions with the Royal Mint and marks the end of a plan first introduced by Prime Minister Rishi Sunak during his tenure as Chancellor of the Exchequer.

Initial Proposal by Rishi Sunak

Former Chancellor Rishi Sunak initially proposed the NFT project in April of the previous year. The initiative, branded as "NFT for Britain," aimed to establish the UK as a leader in the crypto asset sector, fostering innovation and investment in related technologies.

Treasury Consultation and Decision

The decision to abandon the NFT project was confirmed by Andrew Griffith, the UK’s Economic Secretary. After consulting with the Royal Mint, it was determined that the NFT launch would not proceed at this time. However, the proposal will be kept under review, indicating potential future reconsideration.

Concerns Over NFT Speculation

Treasury Select Committee chair Harriett Baldwin highlighted concerns about the speculative nature of NFTs. The lack of substantial evidence supporting NFT investment viability for constituents may have contributed to the Treasury's decision to halt the project.

The UK Treasury's withdrawal from the NFT initiative underscores the cautious approach being taken towards speculative financial products. This move reflects the broader skepticism around the stability and value of NFTs in the current market environment.