Rishi Sunak asks Royal Mint to create NFT

The Treasury has asked the Royal Mint to create a non-fungible token, or NFT, as it attempts to show Britain is at the cutting edge for new technologies by launching its own cryptoasset.

The decision to launch an NFT is likely to raise eyebrows at a time when more than a million people in Britain are expected to fall into poverty this year after Sunak did not do more in his spring statement to cushion the poorest in society from soaring living costs as inflation hits the highest level in three decades.

The rise of NFTs has also led to a spate of scams and have become a target for hackers, losing consumers vast sums.

Last month, Ukraine announced it would issue NFTs to help pay for its military after the Russian invasion of the country. The global NFT market reached $25.5bn (£19.4bn) last year, according to DappRadar, a firm that tracks sales, in a dramatic rise from $100m in 2020.

As with bitcoin and other cryptocurrencies, some economists have said the craze bears the hallmarks of a speculative bubble despite its potential as a powerful and innovative new tool for artists, musicians and publishers.