2022 is going to be the year when the Royal Mint releases an NFT. They have been asked to create a non-fungible token by the UK Chancellor of the Exchequer Rishi Sunak.
It’s part of the government plan to make the UK “a global crypto asset technology hub.” The NFT that is produced will be used as an “emblem.” The announcement was made at the recent Innovate Financial Global Summit that was held in London this month.
This is the latest move into cryptocurrencies and NFTs by a country rather than an individual. Two years ago, Lithuania issued the first ever state-backed digital collectable coin. El Salvador has even made Bitcoin a legal tender which has proved to be a controversial decision. Ukraine has said they plan on issuing NFTs to help raise funds to fight their war with Russia.
An NFT is a unique digital asset with no physical or product equivalent. Ownership is proved by being registered on the blockchain. They could be anything from a tweet to a video link or a work of art, the MetaworldGambler.com informed.
Just what the NFT created by the Royal Mint will look like or what its form will be isn’t yet known. Nor have they said which cryptocurrency will be needed to buy their NFTs. Could they be purchased by using traditional sterling? Hopefully in the weeks ahead, everything will become a lot clearer.
Will this have any impact though? Not everyone is sure that it will. Amrit Dhami who is an associate analyst at GlobalData doesn’t believe so. He believes it may be like a commemorative coin. That’s something the Royal Mint has plenty of experience at creating.
The Royal Mint says they are “one of the world’s leading providers of premium collectables.” They have been in business for 1,136 years so they certainly have plenty of experience.One major project for this year is the design of commemorative coins to mark the Queen’s platinum jubilee.
They seem to have a coin for almost anything. There’s a Winnie the Pooh collection and another that celebrates the work of Sir Elton John. They see the creation of an NFT as a “natural progression” of their work. The Royal Mint have claimed that they “plan to help customers own digital collectibles in a secure and trusted way, while engaging a new audience.”
Just how much their NFTs will be worth is another unanswered question. Also unknown is who would receive the money the NFT is sold for. Will it find its way into the coffers of the Exchequer?
The cost of their current products varies a great deal. Some of their coins may be collectible but only cost around £10. Others however are considerably more upmarket and can sell for six-figure sums.
This is a different kind of business for the Royal Mint to enter. They are used to having a product that has a face value. The precious metal used to create their coins also has a value. With NFTs it’s not quite like that. They only have a value when other collectors believe there is one to be had.
NonFungible are an industry tracker and on April 6 reported the average cost of an NFT was $3,080. There are a lot more NFTs that are being sold for a much higher amount than that. April has seen one entitled ‘Life and Death’ sold for $1m.
