Do not enter – Many financial giants are shouting their love for the metaverse, this virtual world, the future of our social networks. Inspiring for the behemoths of web 2 worn out by a breathless Internet, a symbol of innovation for emerging start-ups of web 3, the metaverse is still trying to define itself. Unknown and mysterious, it intrigues and interests even the body politic. Thus, this week, it is therefore the Bank of England which has spoken frankly on the subject.
In the land of Shakespeare’s language cryptocurrencies tend to be monitored. Although the kingdom is not completely closed to web 3 technologies and other crypto-assets, he keeps in mind the need to protect consumers against the dangers of decentralized finance.
Also, the British Central Bank expressed this week its concern about the development of the metaverse. The sinews of war being for the institution 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 within it could have repercussions 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 are therefore frank in this topic. The use of cryptocurrencies in the metaverse could have consequences on several levels. First, on a global level. 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, expose themselves to the risks associated with cryptocurrencies. Then, at the consumer level the creation of a metaverse budget for households worries. For example, NFTs appear 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 underlines the effects of decentralization and the importance of strict regulation if the metaverse and cryptocurrencies are to be adopted globally. They would then, still according to the British central bank, 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 approaches of the metaverse according to the different countries and each one imposes its style. Dubai, for example, has made metatowards a major axis of the development of its economic growth for the decades to come.
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