Do not enter – Many financial giants are shouting their love for the metaverse, this virtual world, the future of our social networks. Inspirational for web 2 behemoths tired of a breathless Internet, a symbol of innovation for emerging web 3 startups, the metaverse is still trying to define itself. Unknown and mysterious, it is interesting and intriguing even to the body politic. So, this week, it was the Bank of England that spoke frankly on the subject.
In the land of Shakespeare’s language cryptocurrencies tends to be watched. Although the kingdom is not completely closed to web technologies 3 and other crypto-assets, he recalled the need to protect consumers against the dangers of decentralized finance.
Also, the British Central Bank this week expressed concern about the development of the metaverse. The roots of war are for the institution theuse of cryptocurrencies in the virtual world tomorrow that assumes a “systemic risk”.
In other words, the metaverse and above all the use of cryptocurrencies within it can have effects on the organization of our society, even reaching the organs that sustain it.
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No Future for Decentralization?
The details of the Bank of England on this subject are therefore straightforward. The use of cryptocurrencies in the metaverse can have consequences on many levels. First, on a global level. The development of the metaverse pushes the institutions and large companies that manage this world to go out of their comfort zone, and, in fact, expose themselves to the risks associated with cryptocurrencies. Then, at the consumer level the creation of a metaverse budget for the concerns of households. For example, NFTs appear as tomorrow’s solutions to some of today’s problems, thus giving hope for their widespread 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 when the metaverse and cryptocurrencies are adopted worldwide. They then, according to the British central bank, will be a problem for global financial stability.
Like all past and future innovations, web 3 and metaverse technologies invite our institutions to consider a legal framework to support the development of the sector. As for the adoption of Bitcoin, the methods of the metaverse according to different countries and each imposes its style. Dubai, for example, does towards a major axis of development in its economic growth in the coming decades.
Metaverse, Decentralized Finance, crypto-assets… so many concepts that have become part of everyday life. Take the lead and start saving and trading your first bitcoins. Register on the FTX benchmark platform and get a lifetime discount on your trade fees (trade link).