Key highlights:
- The Sun is weighing up a move towards NFTs
- Historical headlines and exclusive media images could become digital art assets
- The Bank of England issues a warning towards businesses approach to crypto
The Sun Newspaper eyes up NFTs
The Sun, one of Rupert Murdoch’s many publishing outlets, has expressed its interest in joining in with the NFT boom. If we think back to what The Sun is known for, it’s had its fair share of famous front pages, headlines, and images – along with its controversies, of course. The consideration is to turn these exclusive images and front pages into digital assets.
The NFT market exploded in 2021, making frequent headlines. The market is estimated to be around $22 billion, and given that their exclusive images and headlines already exist, it may be difficult to reason why they shouldn’t try and take a slice of the pie.
This interest in NFTs is reportedly coming from the chief executive, Rebekah Brooks, along with the chief operating officer, David Dinsmore. It’s not just The Sun that could be used as the source of these assets either, as The Times is also a part of Murdoch’s media empire.
There are some unique challenges ahead, though, such as recreating these famous headlines into NFTs with a unique element – because after all, they already exist and are readily available online. Furthermore, the demographic of those interested in NFTs is generally too young to even remember “The Sun Wot Won It” headlines. In this sense, it’s somewhat an aging that’s declining in relevance looking for ways to remain relevant.
Bank of England Warns against crypto
Cryptocurrency is much more than just NFTs, and NFTs are much more than copyrighting digital art. However, the Bank of England recently came out to warn firms to be cautious of their approach to cryptocurrency and crypto-assets.
“Increasingly, it appears that interest in unbacked cryptocurrencies that have no intrinsic value is coming closer to the traditional financial system. Financial firms should be especially cautious as they approach these issues, thinking hard about risks they may involve” Stated Sarah Breeden, the executive director for financial stability at the BoE.
Sarah particularly warns firms to be aware of the use of crypto as a means to launder money and finance terrorism.
The BoE has a history of warning against crypto, suggesting that its volatility could deeply impact the wider financial system in the future. Of course, as the centralised governing body of money in England, it makes sense that they would take this position, as the rise of cryptocurrency would be a somewhat zero-sum game, in which their own control over the UK monetary system diminishes proportionally.
However, it must be said that the BoE is more concerned with warning banks than they are media outlets dabbling in NFTs. With the banking crisis creating existential doubt only 14 years ago, it’s understandable that major financial institutions do not create too much reliance on a currency and technology that is yet to be fully established.
Poor banking solutions are driving this appetite
Most people group banks in with this hesitancy over crypto – as being the “other” – like the Bank of England. In truth, it’s actually the failures of the current banking system that is driving the demand towards cryptocurrency. Expat banking solutions in UK are essentially non-existent.
Whilst it’s often altcoins and NFTs that make the headlines, there are some very real uses that are outcompeting what banks have to offer. An example of this is the movement towards remote working – and the globalisation that accompanies this.
With more and more ex-pats working overseas, and with this forecasted to grow as border restrictions become more lax, high street banks are failing to keep up with this new lifestyle. Unable to cash foreign cheques, long processing times for overseas transactions, and extortionate FX charges are some of the many reasons that customers are looking for alternatives to banks.
While crypto isn’t the only answer to this problem, the lackluster service that banks are offering is being magnified under such circumstances. %3-%5 exchange margin, in particular, is a key driving force away from traditional banking infrastructure that’s overly sunk into its legacy systems.
Furthermore, the case for a digital pound sterling is also growing in strength for this very reason. A digital pound sterling could increase the efficiency of the monetary system, particularly in securities trading and settlement, but may also yield some benefits to everyday people. After all, it’s not the decentralisation that most people are desiring (people who are not involved in crypto), it’s simply driven by the failures of current infrastructure and financial institutions.
