Access Forbidden – Many financial giants are shouting theirs love for the metaverse, this virtual world, the future of our social networks. Inspired by the giants of the web 2 consumed by a breathless Internet, a symbol of innovation for the emerging web 3 startups, the metaverse is still trying to define itself. Unknown and mysterious, it intrigues and also affects the body politic. So the Bank of England is speaking frankly on the subject this week.
In the land of Shakespeare’s language cryptocurrencies they tend to be monitored. Even if the kingdom isn’t completely closed to web technologies 3 and other crypto-assets, keep in mind the need to protect consumers from the dangers of decentralized finance.
Furthermore, the British Central Bank expressed its concern over the development of the metaverse this week. The nerves of war being for the institute theuse of cryptocurrencies in the virtual world of tomorrow claiming a “systemic risk”.
In other words, the metaverse and above all the use of cryptocurrencies internally it could have repercussions on the organization of our company, also reaching the bodies that support it.
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No future for decentralization?
The details of the Bank of England are therefore frank on this subject. The use of cryptocurrencies in the metaverse could have consequences on multiple levels. First, globally. The growth of the metaverse pushes the institutions and large companies that govern this world to step out of their comfort zone and, in fact, to expose themselves to the risks associated with cryptocurrencies. Then, at the consumer level, the creation of a metaverse budget for the concerns of families. For example, NFTs are displayed as tomorrow’s solutions to some of today’s problems, thus giving hope for their massive use in the future.
In other words and more generally, the Bank of England therefore emphasizes the effects of decentralization and the importance of strict regulation if the metaverse and cryptocurrencies are to be adopted globally. According to the British central bank, they would therefore be a problem for global financial stability.
Like all past and future innovations, web 3 and metaverse technologies invite our institutions to think of a legal framework to support the development of the sector. A bit like for the adoption of Bitcoin, the metaverse approaches according to the different countries and each one imposes its own style. Dubai, for example, did metaverso a main axis of development of its economic growth for decades to come.
Metaverse, decentralized finance, crypto-assets … many concepts that are increasingly part of everyday life. Take the initiative and start accumulating and trading your first bitcoins. Register on the FTX benchmark platform and get a lifetime discount on your trading fees (trading link).