The Bank for International Settlements (BIS) highlighted in a recent report that the future development of the metaverse still lacks infrastructure. In addition to hardware equipment, it particularly emphasizes the need for regulatory frameworks and payment services, which are areas that governments and regulatory agencies can start researching early on.
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Improvement of Infrastructure for Metaverse Development
Regulatory Policy Framework for Metaverse
Payment Services as an Important Foundation
BIS Urges Governments to Early Implement Regulation on Metaverse
BIS points out that the metaverse has the potential to reshape various fields such as gaming, e-commerce, and education, but all of this relies on ensuring equitable access for everyone, data privacy, and robust consumer protection policies. In particular, lacking consumer protection in regulation could undermine the value that the metaverse can create.
To prevent the metaverse from being dominated by private companies and fragmented in the market, BIS emphasizes the need to establish an effective policy framework that promotes innovation while also protecting users and maintaining the integrity of digital transactions. This matter has become increasingly urgent compared to the past.
In order for users to adopt and connect with the real world on a large scale, the importance of payment providers in the metaverse is gradually increasing.
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Payment is crucial for making the metaverse commercially viable and promoting economic activities. Existing metaverse projects already support various payment methods for direct purchases or transactions.
Current Status of Payment Methods in Metaverse Projects and Interviewee Expectations
Another payment option is central bank digital currency (CBDC), which may become increasingly important for the metaverse as more countries are experimenting with it. Since metaverse users may be located in multiple jurisdictions, the integration of multiple CBDCs can allow for faster conversion of different users’ fiat currencies.
Although existing metaverse projects have not yet developed sustainable business models and complete products due to market factors and an immature environment, and whether the metaverse can truly achieve widespread adoption is still uncertain.
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However, BIS points out that the metaverse does have many potential application scenarios, including gaming, education, and healthcare, which may have important impacts on the digital economy. These include blurring the boundaries between tradable and non-tradable goods, greater cross-border economic integration, and new requirements for payment services, such as programmable and cross-border payments.
Therefore, governments should not wait until the industry matures before taking action. BIS calls for global regulatory agencies, central banks, and policymakers to collaborate to ensure that the metaverse, while promoting innovation, can protect users and maintain the integrity of digital transactions, with a specific focus on regulatory frameworks and the payment industry.
BIS
metaverse
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