Metaverse Future: BIS Calls for Strong Policy
The Bank for International Settlements (BIS) has highlighted concerns over potential fragmentation and private sector dominance in the nascent metaverse.
In a recent report, the BIS emphasized the importance of regulatory oversight to safeguard against these risks. The report underscores the transformative potential of the metaverse across sectors like gaming, e-commerce, and education, but warns that without strategic governance, this promise could be compromised.
Central Bank Digital Currencies (CBDCs) are identified as a crucial element in shaping the financial infrastructure of the metaverse.
The report distinguishes between retail CBDCs, accessible to households and businesses, and wholesale CBDCs, confined to financial institutions. CBDCs could facilitate faster and cheaper cross-border transactions, essential in a metaverse where users span multiple jurisdictions.
The report also delves into the risks associated with private dominance, particularly in payment services within the metaverse. It stresses the importance of preventing fragmentation and ensuring fair competition.
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The BIS advocates for streamlined and interoperable payment systems while highlighting the central role of central banks and financial regulators in guiding payment instrument choices.
Overall, the report calls for a regulatory framework supporting efficient payments, data privacy, digital ownership, and consumer protection to foster a more equitable and accessible digital economy.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
