The United Kingdom’s ambitions to become a global leader in web3 adoption have taken a hit as the government suspends its NFT plans. Despite the appointment of a crypto-friendly Prime Minister, Rishi Sunak, who initiated the government-backed NFT project in April 2022, the UK Treasury announced on March 27th that it was canceling the Royal Mint’s plans to release government-backed NFTs.
Sunak had tasked the Royal Mint to kickstart the NFT project by the summer of 2022 to turn the UK into a global crypto hub, but the Mint failed to meet deadlines. Economic secretary Andrew Griffith confirmed that the Royal Mint is not progressing with its proposal, but the initiative would remain under review.
The government’s decision to halt progress on the NFT project has been linked to the cryptocurrency sector’s dwindling performance. The Treasury Select Committee’s chair, Harriet Baldwin, cited the lack of evidence that constituents should put their money in these speculative tokens unless they are prepared to lose all their money.
Although parliament members have voiced their concerns about the NFT project’s progress, the details remain vague. The Royal Mint and UK Treasury have yet to elaborate on what their NFTs would offer and how users would use them, and no further announcements have been made since the initial proposal.
Opponents of the plan criticized Sunak’s priorities, pointing out the cost of living crisis in the country. The suspension of the NFT project could lead to the UK backtracking on its other web3 initiatives, which could slow down the government’s efforts to become a crypto-friendly nation.
Meanwhile, other countries are taking the lead in the adoption of NFTs and web3 technologies. In October 2022, Japan’s Prime Minister, Fumio Kishida, proposed a digital solutions plan that included NFTs and the metaverse. The UK’s decision to suspend its NFT project could hinder its competitiveness in the global market and limit its ability to attract investment in the long run.
In conclusion, the UK’s decision to suspend its government-backed NFT project is a blow to its ambitions to become a global leader in web3 adoption. The lack of transparency regarding the NFT project’s details and the government’s concerns about the cryptocurrency sector’s performance have led to the suspension. This decision could also hinder the UK’s competitiveness in the global market and limit its ability to attract investment.
