Treasury still keen on state-backed NFT despite crypto crash and government upheaval 

The UK Treasury is still devoted to creating a state-backed NFT with the Royal Mint despite the recent crypto crash and resignations of key ministers supporting this project.

HM Treasury reiterated its dedication to the state-backed NFT. “We are still committed to introduce an NFT, working with the Royal Mint. This work is ongoing, and we will update on that in due course,” HM Treasury said in an email to City PM

A spokesperson for the Royal Mint said to City PM, “We are continuing to develop our first NFT range.  We will share further details in due course.”

Former Finance Minister Rishi Sunak asked the Royal Mint earlier this year to create an NFT (non-fungible token) by the summer, which HM Treasury said “shows the forward-looking approach we are determined to take towards cryptoassets in the UK.” The government has emphasised its aims to “make the UK a global hub for cryptoasset technology and investment.”

Meanwhile a severe “crypto winter” has caused the prices of major cryptocurrencies to plunge recently and wiped out billions of dollars from the crypto market. NFT sales dropped to a 12-month low last month amidst the crypto rout, at just over $1bn (£835.7m) from $12.6bn (£10.5bn) in January this year, according to crypto research firm Chainalysis. 

Rishi Sunak and Economic Secretary to the Treasury John Glen, major backers of the NFT project, also resigned this month as protest against Boris Johnson in an unprecedented upheaval of the British government.