While the significance of the U.K.’s issuing of an NFT is still unclear, its official support of sable coins is a more interesting development. In this Motley Fool Live segment from “The Virtual Opportunities Show,” recorded on April 5, Fool.com contributor Travis Hoium examines the significance of these moves by the U.K. on the world of cryptocurrency.
Travis Hoium: The UK is saying that they are going to officially issue an NFT and that they will be supportive of stable coins. The NFT announcement is a little bit strange because I don’t know why they’re issuing an NFT. Just except to be able to say that they issued an NFT. They basically said that the purpose of it will be talked about later. The stable coin thing is a little bit more interesting because they said that they would basically embrace it for financial transactions, which is a very meaningful thing in the world of cryptocurrency.
If we’re going to see disruption coming from crypto, financial transactions is one logical place for that to take place. But governments can basically put the closure on this. We saw this in China. China basically said, absolutely no, we’re not doing anything with cryptocurrency. The industry get killed there. The White House came out with an executive order a few weeks ago that was pretty bullish, I think. We don’t have any change in regulations yet today. But those probably will be coming over the next year to two years depending on what the administration figures out there and here’s from the different departments in the government.
The European Union announced last week that it had some changes that weren’t very bullish for the crypto industry and basically they were going to put restrictions on transactions and then what has to be reported to the government. The initial discussion was a limit of $1,000 would have to be reported to the government. Basically, when you pay rent, you would have to tell the government that you paid rent or the exchange of the wallet that you use would have to tell them, which seems a little bit bizarre. The UK, which is going through Brexit, I think that’s still ongoing, is taking a little bit more bullish stand.
That is really the takeaway for me here is that both the US and UK are trying to figure out ways to grow this crypto market overall and all these things that we’re talking about, NFTs, the metaverse, they’re seeing the opportunities here in the investment that’s pouring in, you’re seeing billions of dollars go into venture capital firms that are investing in these businesses. I think that’s really bullish for the crypto space overall and for innovation that’s being built on top of the blockchain.