2021 was a seminal year for object d’art sales via NFTs. 2022 look like it will be a year for MetaFi. Maybe a recap of what is going on with Christie’s and Visa and copying celebrities not really necessary. The growth of NFTs won’t last forever because of predictions that a robust tech stack to verify, value and trade digital asset collections is expected to emerge soon.
The idea that the NFT financing sector to create value with liquidity is just an assumption because it would be confined to the crypto arena. Switzerland is already known as a tax haven, and it is creating history by innovation. At the end of 2021 the Six Digital Exchange, a financial services firm which operates Switzerland’s National Stock Exchange, floated the idea of opening up to NFTs. This move goes hand in glove with setting up a CBDC experiment. Done together, these initial steps will give credence and endorse digital currency and the NFT market (secondary). Integrating digital holdings of all kinds with Swiss finance will be seamless.
The issue at hand is the fact that regulation of tokenized assets is not understood. Issues like ambiguous laws, failure of technology and a panicked public can be a stumbling block for smooth working of digital marketplaces. Problems like the exposed identities of entity creators like Bored apes and the Bitfinex hacking are a reminder for the need to safeguard privacy.
Web3 and similar technologies are resulting in indistinct boundaries between tangible and digital commodities and exchanges – public and private. The legal framework for such changes and their impact has to be considered so that transitioning to a crypto-based future is easy. The answers to these questions are not that easy to find. Regulators are working hard on filling the gaps left by the speedy adoption of tokenized assets and reduce the impact on traditional marketplaces.
