The U.K has shared plans to mint its own non-fungible token in a bid to become a“world leader” in the cryptocurrency space.
The Royal Mint — the government-owned company responsible for minting coins for the U.K. — has been asked to create and issue the NFT “by the summer,” upon Finance Minister Rishi Sunak’s order.
The initiative is part of a broader effort by the government to “lead the way” in crypto, according to City Minister John Glen.
According to Glen, the UK is bringing certain stablecoins into the U.K. payments framework so that stablecoin issuers and service providers can “operate and grow in the U.K.”
The UK would also consult on a “world-leading regime” for regulating trade in other cryptocurrencies, including bitcoin.
Britain will ask the Law Commission to consider the legal status of blockchain-based communities known as decentralized autonomous organizations, or DAOs.
The UK is examining the tax treatment of decentralized finance (DeFi) loans and “staking,” which gives crypto users the ability to earn interest on their savings.
The UK is establishing a cryptoasset Engagement Group that will be chaired by ministers and host members from U.K. regulators and crypto businesses.
Britain is also exploring the application of blockchain technology in issuing debt instruments.
Glen said the government was also “widening” its gaze to look at other aspects of crypto, including so-called Web3, a movement that proposes a more decentralized version of the internet built on blockchain technology.