Metaverse, danger? Crypto in the crosshairs of the British regulator
Do not enter – many financial giants shout theirs love of the metaverse, this virtual world, the future of our social networks. Inspirational for Web 2 giants worn out by the breathless Internet, a symbol of innovation for fledgling Web 3 startups, the metaverse is still trying to define itself. Unknown and mysterious, it intrigues and interests even the body politic. So this week it was the Bank of England that spoke openly on the subject.
In the land of Shakespeare’s language cryptocurrencies tend to follow each other. Although the kingdom is not completely closed for web 3 technologies and other crypto-assets, he has in mind the need to protect consumers from the dangers of decentralized finance.
Also, the British central bank this week expressed concern about the development of the metaverse. The sinews of war are for the institutionusing cryptocurrencies in the virtual world of tomorrow claiming “systemic risk”.
In other words, the metaverse and above all the use cryptocurrencies within it, it could have repercussions on the organization of our society, even on the organs that maintain it.
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No future for decentralization?
Therefore, the details of the Bank of England are open on this subject. The use of cryptocurrencies in the metaverse could have ramifications 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 of household budgets is a concern. For example, NFTs appear as tomorrow’s solutions to some of today’s problems, which gives hope for their mass 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. They would then, according to the British central bank, represent a problem for global financial stability.
Like all past and future innovations, web 3 and metaverse technologies invite our institutions to think about a legal framework to support the development of the sector. A bit like the adoption of Bitcoin, the metaverse approaches different countries and each imposes its own style. Dubai, for example, did target towards the main axis of development of its economic growth in the decades to come.
Metaverse, decentralized finance, crypto-assets… so many concepts that are increasingly part of everyday life. Take the lead 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).