Chancellor Rishi Sunak asks Royal Mint to create NFT
CHANCELLOR RISHI Sunak has asked the Royal Mint to create a NFT this year.
John Glen, chief economic secretary to the Treasury, made the announcement today, saying the UK is "open for crypto business".
The NFT - or non-fungible token - will be issued by the summer.
NFTs are tradable, unique items that have taken the internet by storm over the last year.
They are built using the same technologies as cryptocurrencies such as Bitcoin and are stored on the blockchain.
That means it cannot be replicated and is unique to whoever owns it.
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The Royal Mint - which produces coins and notes for the UK - has been asked to create the token by the summer.
Speaking at the Innovate Finance Global Summit in London today, Mr Glen said: " I am announcing today that the Chancellor has asked the Royal Mint to create a non-fungible token – an NFT."
He said it is "to be issued by the Summer, an emblem of the forward-looking approach we are determined to take… and there will be more details available very soon."
The Chancellor has previously said he wants to create a UK digital currency.
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As with cryptocurrencies, buying NFTs is a very risky investment.
If you buy an NFT you're placing a bet on the value going up - but this isn't guaranteed and you could lose all your money.
If there is no demand for the NFT you buy then you could end up paying a large amount for something that declines in value or that you cannot sell.
NFTs are still a new market so there is unlikely to be the same demand you will find for other physical items such as trading cards, art or classic cars.
You could also create your own NFT but there is no guarantee of a buyer and you could end up wasting your time and money.
It's not clear yet what an NFT created by the Royal mint would be used for, what it would cost or who could buy it.
Mr Glen also said today that the UK is "open for crypto business".
"We want this country to be a global hub - the very best place in the world to start and scale crypto-companies," he said.
However, he acknowledged the risks they can present to consumers.
He said: "We’ve already said that we’ll seek to protect consumers by legislating to bring certain cryptoassets into the scope of financial promotions regulation… and it’s essential that investors understand the risks they are taking."
A crypto investor lost all of his life savings after the Bitcoin exchange's owner died and no one else had the passwords.
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One student managed to make $1million after making NFTs with photos of his own face.
Last year, a valuable NFT sold for $3,000 instead of $30,000 due to an online blunder.
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