Visa has announced the purchase of the CryptoPunk 7610 NFT as its first venture into the NFT field, which it regards as a test of the industry and its entry into digital commerce.
This may come as a surprise, as it is difficult to comprehend why Visa, a firm mostly concerned with cards, would want to purchase an NFT, which is essentially a digital collection. Cuy Sheffield, Visa’s crypto head, sees it as a natural step because he believes that NFTs will constitute the future of retail, social media, and eCommerce. But for speculators, it is one more in the list of instruments that they can pump up in the coming months.
Visa completed the purchase of the NFT in order to understand the infrastructure and other requirements for the purchase and safe storage of NFTs, and the company will be looking for ways to leverage the NFTs in the future, as well as how the company can seamlessly integrate the NFT buying experience for its customers.
Cuy stated that because Visa enables trade, anything that leads to commercial transactions is of interest to the corporation. With NFTs gaining traction in recent months, with sales exceeding $1 billion last month, it is clear that the future will bring a lot more transaction volume in the NFT space, and Visa would like to be a part of that engagement, ensuring smooth and reliable transactions occur in the NFT space as well.
Cuy also spoke a note of caution, stating that he was unsure whether NFTs would become popular, and that it was more of a commercial choice for the company to study how the entire cycle of NFTs worked so that it could be ready for transactions in this field as it grew. It is astonishing that the NFT field has attracted so much attention in such a short period of time, but it might also be problematic as more companies enter this space, some of which may not have a thorough understanding of the industry. Already, there have been allegations of corporations issuing NFTs without adhering to the necessary security measures, which could result in losses for retail traders who are lured into this arena out of FOMO. There are currently no controls or oversight on NFTs from any corporation, which might be disastrous in the coming months, particularly for retail traders.