UK Chancellor Rishi Sunak has instructed the Royal Mint to create a non-fungible token (NFT) to keep the UK at the forefront of the move to a cashless world.
Sunak has said that he wants wants Britain to be a global hub for digital technology.
According to The Mail Online:
The Chancellor wants the token to be issued by the summer in a bid to show ‘the forward-looking approach we are determined to take towards crypto assets’.
NFTs give investors a share of ownership of a digital asset such as a piece of art or music.
But the tokens have become targets for hackers and con artists.
Sunak’s decision to press ahead came as he doubled down on his support for crypto coins – despite fears that they could be used by criminals and money launderers.
The Chancellor said: ‘This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.’
It is understood the NFT will back a ‘collectable digital artwork’ which the Royal Mint will add to its range of products.
Crypto has garnered a bad reputation in recent years, as bitcoin – the best-known crypto asset – has been used by criminals to avoid the eyes of the law.
Its value is also incredibly volatile, since it is not tied to any underlying asset.
John Glen, Economic Secretary to the Treasury, said they would focus on ‘stablecoins’, which are similar to bitcoin but tied to an asset such as the pound or dollar.
Writing in The Telegraph last week, Will Kirkman made the following points:
Around 10 million people, or one in five adults, would struggle to manage in a society without cash, a report from the Royal Society of Arts commissioned by cash machine network Link found.
The older generation in particular is being left behind. One in three people dependent on cash are above 65. Some four million of those who would struggle most without cash are over 65 years old.
This section of society would face increased isolation, difficulty budgeting and a greater risk of being defrauded without access to physical currency, the report warned. A further 2.5 million of the most vulnerable were between 55 and 64.
This comes after the pandemic dramatically accelerated the country’s move away from notes and coins. The public now withdraws around £100m less from cash machines each day compared to before the pandemic, according to Link.
Meanwhile banks used Covid as an opportunity to accelerate their branch closure programmes. Last summer 99 branches closed their doors on average every month, according to Which?, the consumer group.
Cash machines are also disappearing. The number of free cash points has fallen by a quarter since January 2018, with fewer than 50,000 remaining. Some machines have started to charge for withdrawals, causing usage to fall.
The lack of bank branches has made it more difficult for retailers to deposit or access notes and coins which in turn has “nudged” some retailers and restaurants into refusing cash altogether, Natalie Ceeney of the Access to Cash review said.
If they succeed in eliminating cash, it’s game over for humanity. It really is as simple as that.
