Cryptocurrencies
Metaverse Crypto Use Raises Systemic Risk, Bank of England Says
- Households and banks may increase crypto exposure in metaverse
- Existing risks surrounding digital assets would be amplified
Photographer: Erhan Demirtas/Bloomberg
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Widespread adoption of cryptoassets in a fully developed metaverse may pose a systemic risk to financial stability and would require “robust consumer protection” frameworks, staffers at the Bank of England said.
When built, decentralized digital worlds and platforms could host large volumes of real-world economic transactions carried out via crypto tokens like Bitcoin and Ether, BoE researchers Owen Lock and Teresa Cascino said in a blog post published on Tuesday.