BIS Sounds Alarm on Unregulated Metaverse: A Plea to Prevent Control and Chaos The Bank of International Settlements (BIS) has raised a red flag, urging regulators to safeguard the digital economy from the perils of an
unregulated metaverse.
In a 31-page report, BIS cautions against a future where
powerful private firms reign supreme, potentially leading to a
fragmented virtual landscape. To combat this, policymakers are urged to foster
interoperable payments that cater to user needs.
Data privacy, digital ownership,
and consumer protection also take center stage as BIS calls for clear standards through regulatory frameworks. However, the report also casts doubt on the metaverse's recent allure,
suggesting that interest may have dwindled over the past couple of years. When it comes to the structure of the metaverse,
BIS weighs in on the debate between centralization and decentralization. While a centralized approach could sacrifice interoperability and user control,
a decentralized model might only offer an illusion of participation. Citing an example from the Web 3 game Decentraland,
BIS highlights that even in systems with voting mechanisms, there's a risk of influential voters swaying outcomes against consensus.
