Will CBDCs Rule the Metaverse?

The metaverse should be powered by central bank digital currencies, not speculative cryptocurrencies, unstable stablecoins or buzzy NFTs, according to a report by the bank for central banks.
 
State-backed tokens will provide more safety and stability in virtual worlds than solutions provided by DeFi and native web3 projects, the Bank for International Settlements argued.
 
“Users would generally want the currency used in such transactions to be stable against their income, expenses, and financial assets and liabilities in the real world,” said the BIS report.
 
Most decentralised metaverse platforms, one of the web3 cornerstones, use their own native tokens in their virtual worlds. But the Basel-based global forum of central bankers warns they may pose financial risks.
 
The report comes as countries around the world are racing to develop CBDCs. But these projects are criticised for potentially super-charging state surveillance of people’s spending habits.


​Source: DL News