Only if other party recognize usage of specific NFT as valid or legal ownership.
Totally true.
financial institutions who wish to invest heavily on crypto currencies will embrace it. if cryptocurrency needs to provide wholesale procedures with trusted B2B interactions, then such a feature may need to get considered. this is not suitable for household level savings.
Based on the goal, why don't we just sign address with specific message and let authority or other party know about it?
the problem is not about introducing an address as a pre-process solution.
just imagine a pool-address with almost 1000 BTCs in it and cyber criminals steal 0.5 BTC from a victim and send into that pool, then vanish the track of the BTC by extracting three separated 0.1, 0.15 and 0.25 BTC on-chain to 3 new different addresses, so nothing remains traceable with this specific 0.5 BTC, any more. but if you convert it into 0.5 "Bitwise NFT", the post-process nature of the solution guarantees the foot print of those specific 0.5 BTCs to any destination..