Analysts at the Bank for International Settlements (BIS) found that the Metaverse technology sector lacks systematic development, leading to increased competition. Therefore, the sector needs regulation to prevent possible fragmentation and dominance by large private companies.
The Bank for International Settlements (BIS) published a report that examines the prospects for the development of Metaverse technologies and the economic consequences of the use of virtual space. The main conclusion drawn by the analysts is the need to introduce regulation into the sector.
The authors of the study point out that developments in the Metaverse sector are rather chaotic, and the desire of large private companies to dominate virtual space leads to increased competition. As a result, parallel developments in a highly competitive environment can make the sector fragmented, contradicting the fundamental principles of the Metaverse.
The BIS analysts urged regulators to consider the potential benefits of Metaverse technologies and to develop a legal framework to regulate the sector. The document’s authors also called on central banks to develop regulated payment systems that would prevent possible control of the financial aspects of Metaverse projects by large private companies.
The analysts also note that despite the surge of interest in Metaverse technologies, the mass adoption of virtual reality-based projects is still in its early stages. However, immersive technologies have the potential to transform the global economy. In particular, Metaverses can make prices for some services less geographically based, stimulate international geographic integration, and transform the labor market.
The Chinese authorities recently discussed the need to control users in Metaverses with representatives of the public and major businesses.