Introducing the Royal Mint's NFT collection

In April, a high-ranking U.K. government official announced that the country would issue its own nonfungible tokens (NFTs). Per Rishi Sunak's vision for the country's future, the Royal Mint is developing NFTs to symbolize the country's forward-looking approach. However, details about what NFTs are or look like have not yet been revealed.

As a new prime minister and cabinet are expected to be selected on Sept. 5, the degree to which the U.K. embraces crypto is now an open question. NFTs are digital tokens on blockchains linked to physical assets, such as art. According to industry experts, governmentissued NFTs must provide Utility and community, including event access. Despite announcing that it is developing a range of NFTs, the Royal Mint did not specify whether the tokens would have any other purposes.

The price of a Royal Mint NFT is divided among industry members. "You might be able to get a week's holiday with the queen for 10 million British pounds sterling," said Neil McFarland, CEO of First Light Games. "Don't underestimate people's willingness to flaunt their wealth."

A million-dollar NFT isn't too far from reality, according to McFarland. In recent years, some NFTs have sold for millions, and some have displayed grand displays of wealth. In December, Pak's "The Merge" artwork sold for $91.8 million, making it the most expensive NFT ever. "Everydays: the First 5000 Days" by Beeple sold in 2021 for $69.3 million, making it the most expensive artwork ever sold. Nonfungible reports that the average price of an NFT sale has fallen 16.2% to $415 over the past 12 months.

To reach most people in the country, a U.K. government NFT couldn't be limited to millionaires. Considering how high food and energy prices have become, even 50 pounds might be too

much for some people. Non-Fungible's Gauthier Zuppinger, co-founder and NFT data provider, says, "Can governments use NFTs to raise money from citizens?"

Utilities and community Pedro Herrera, a senior blockchain analyst at DappRadar, said, "Utility is essential for NFTs to thrive. Exclusive membership benefits such as access to real-world events and limited-edition merchandise are available through NFT collections like Bored Ape Yacht Club." Herrera asked, "How will they reward their owners for being part of their community and collection?"

Alternatively, the government could offer NFTs for specific events, or it could also offer discounts on train rides, Zuppinger said. According to some industry members, issuing collectible NFTs without utilities would be better. "For generations, the Royal Mint has issued collectible coins, and it shouldn't be hard for it to do the same in an NFT format and appeal to a new generation of collectors," says Robby Yung, CEO of blockchain-based game company Animoca Brands.

Yung said collectible NFTs could commemorate events like the Queen's Jubilee or be used to redeem physical coins. Collectible coins by the Royal Mint range from 20 to 10,165 British pounds sterling ($23 - $11,838.62).

The community is another important factor for a successful NFT, but the general population may not understand enough about NFTs to engage with them properly, Zuppinger said. Users must create a digital wallet and securely store their private keys to utilize the service. Decentralization is not for everyone, Zuppinger said.

—Crypto Weekly