Friday, July 1

For banks, the future of cryptocurrencies is the metaverse

Key facts:
  • Goldman Sachs, Bank of America and Morgan Stanley have all confessed their interest in the subject.

  • The decentralization of networks like Bitcoin is key to advancing a new era of the internet.

The big brands in the banking and financial sector worldwide pay a lot of attention to the development of the metaverse. These digital worlds could be key, in his vision, for cryptocurrencies to find their definitive place in society.

One of the most important banks in the United States and the world, the Goldman Sachs, expressed a few days ago its interest in the metaverse and its development, through a publication of one of its directors. In the letter, the bank explains that it sees blockchain as the fundamental technology for the development of the metaverse and the web3, according to an analysis published by its manager Rod Hall and replicated by CoinDesk.

In this sense, they consider that blockchain is important because it is the only technology that allows “uniquely identifying each virtual object independent of a central authority.” This, in the analyst’s view, is crucial for tracking asset ownership in the metaverse.

In addition, Hall said that, while it is difficult to foresee investment possibilities in this context, “companies that depend on centralized control of user identity are likely to find a new business model by adopting blockchain.”

Rod Hall is also an expert in hardware, technology and communications, but today he works as a manager at GS. Source: Business Insider.

Similar to Goldman Sachs, Bank of America has also come out in favor of what the metaverse can offer the world of finance and society in general. Haim Israel, director of research of that entity, assured that cryptocurrencies may find in the metaverse an opportunity to go massive.

This is because they work as a payment method in the metaverse for the multiple investment possibilities that exist in these virtual worlds. The use of cryptocurrencies, in addition to lower payments for services or digital goods, includes other more important expenses such as the acquisition of land, vehicles and other luxuries.

The metaverse and its potential “to change lives”

In a vein similar to Goldman Sachs and Bank of America, Jefferies, a New York-based financial services company, recently spoke. According to the company’s director of equity strategy, Simon Powell, the metaverse “will be the greatest life disruption ever seen” and can be compared to the early years of the internet.

The term “metaverse” gained popularity after Facebook’s announcement to create Meta. Source: adobe.stock.

“A single metaverse could be more than a decade away, but as it evolves, it has the potential to change almost everything in human life,” adds Powell in a post commented on by Business Insider. Along this path, the steps to follow include hardware development first, then moving forward with the software, and finally the companies that will be involved.

In that same post, It is also detailed that Morgan Stanley has expressed interest in the metaverse, “The next big thing” for investment. Meanwhile, events are happening and more and more onerous outlays are perceived to have a place in that world that is growing by leaps and bounds.

What are we talking about when we say “metaverse”? The metaverse is a virtual world created from three-dimensional images and augmented reality that gives rise to new interactions between its inhabitants.

There are decentralized metaverses, such as Decentraland. At the other extreme, that of the centralized ones, is the one recently announced by Facebook, called Meta. This has caused massive worldwide interest in metaverses and their possible developments.

Web 3.0, also called web3, is a related concept because it is within it where metaverses are born and take place. This new website constitutes a new stage in the age of the internet, with new features never seen before such as the use of new databases, artificial intelligence and three-dimensional spaces. Together, all of them would enable new forms of interaction between users.

As CriptoNoticias has detailed, the technology behind Bitcoin is key to the development of the web3. This is so because decentralization is essential for this new concept of a more autonomous and interactive internet, with data distributed in various storage points.

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