UK NFT Dropped Over Lack of Demand, Finance Minister Hunt Says

The UK government has abandoned a proposed non-fungible token (NFT) project due to concerns over a lack of demand. The Royal Mint was tasked with creating a digital token last year by then-Finance Minister, now Prime Minister Rishi Sunak, but the government has now decided to drop the project. Finance Minister Jeremy Hunt cited the changing landscape of the NFT sector as the main reason behind the decision. While NFTs peaked in global sales of $5 billion on some days in January 2022, the most recent 24-hour sales data was just $44.3 million. The government is not convinced that the demand for NFTs will continue in the same way and therefore felt that it was not worth pursuing the project.
Hunt noted that while the UK government wants to be at the forefront of new technology, it must be realistic about the viability of projects. "I think it's a question of demand," he said. "We always want to be at the cutting edge in the UK, in terms of new technology, but the world has changed significantly since then and we're not convinced that the demand is going to be there in the same way."
The Royal Mint was hoping to create a digital asset that would appeal to collectors and investors alike. The decision to drop the NFT project is a blow to the organization, which is known for producing coins and medals for the UK government and other countries, and was seen as well-placed to develop an NFT that would have a unique appeal.
Despite the UK government's decision, the NFT market continues to evolve and adapt. While sales may have slowed in recent months, many experts believe that the technology has the potential to revolutionize the art and collectibles markets. The decision by the UK government to abandon the project underscores the importance of carefully considering the viability of new technology projects before investing resources into them.