Widespread use of Metaverse may push the adoption of cryptocurrencies and it may further result in huge financial instability, research by the Bank of England claimed.
Bank of England, a central Bank, is popularly known as the biggest critic of cryptocurrencies but still, its multiple researchers admitted many times that cryptocurrencies have potential & blockchain technology can shake the global financial economy because of its better use cases & decentralized nature.
Recently Bloomberg reported that research by Owen Lock and Teresa Cascino from the Bank of England claimed that a significant volume of real-world fund transactions can be done via cryptocurrencies. So such types of crypto contribution in the real-world use case may result in a significant impact on the real-world financial systems.
Research also noted that policymakers should introduce highly restricted laws to ensure the safety of investors and also in favor of the traditional financial system. In particular, they talked about the use case of cryptocurrencies in the Metaverse, a next-level virtual reality project.
“The importance of crypto assets in the open-metaverse means that if an open and decentralized metaverse grows, existing risks from crypto assets may scale to have systemic financial stability consequences,” Research said.
So, policymakers needed to ensure that they are taking steps against the possible risks associated with crypto use in Metaverse.
In a neutral situation, Lock and Cascino thinks that people will spend the majority of their time in the Metaverse to connect with people and also complete all their possible online needs like entertainment & shopping, etc. And all these will happen via cryptocurrency use, which means a huge amount of fiat value will remain in Crypto assets.
However such research should be taken as tension among the Metaverse proponents but still many Metaverse linked proponents from crypto Industry showed significant happiness because of such research & report because these are just like a mirror to show the potential of Cryptocurrencies.