{"id":65628,"date":"2022-08-10T16:57:42","date_gmt":"2022-08-10T13:57:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=65628"},"modified":"2025-09-06T21:02:25","modified_gmt":"2025-09-06T18:02:25","slug":"bank-of-england-flags-rising-systemic-risks-from-the-metaverse","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bank-of-england-flags-rising-systemic-risks-from-the-metaverse\/","title":{"rendered":"Bank of England flags rising systemic risks from the metaverse"},"content":{"rendered":"<p>Widespread uptake of crypto assets in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-metaverse\">metaverse<\/a> could pose a systemic risk to financial stability and require &#8216;robust protection of consumers&#8217; rights&#8217;. To these <a href=\"https:\/\/bankunderground.co.uk\/2022\/08\/09\/cryptoassets-the-metaverse-and-systemic-risk\/\">\u0432\u044b\u0432\u043e\u0434\u0430\u043c<\/a> Lok and Kashino said.<\/p>\n<p>They believe that, through decentralized digital worlds and platforms, large volumes of &#8220;real economic transactions&#8221; in cryptocurrency will pass. This could potentially threaten financial stability, the BoE says.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Therefore an important step for regulators is to mitigate risks associated with the use of crypto assets in the metaverse before they reach systemic status,&#8221; Lok and Kashino said.<\/p>\n<\/blockquote>\n<p>They presented a scenario in which consumers spend a lot of money and time in virtual worlds. According to the Bank&#8217;s staff, households could store part of their savings in digital assets. Companies, in turn, would begin to accept payments in cryptocurrencies, and financial institutions would offer related industry services.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We contend that, if an open and decentralised metaverse grows, the crypto-asset\u2013related risks could scale up and have systemic consequences for financial stability,&#8221; the BoE officials noted.<\/p>\n<\/blockquote>\n<p>Earlier, analysts at Citibank forecast <a href=\"https:\/\/forklog.com\/en\/news\/citibank-estimates-metaverse-market-at-13-trillion-by-2030\">growth of the metaverse economy to $13 trillion<\/a> by 2030.<\/p>\n<p>According to Trend Micro experts, the development of virtual worlds <a href=\"https:\/\/forklog.com\/en\/news\/trend-micro-flags-threats-to-metaverses\">will lead to the spread of<\/a> traditional cyber threats in them and the emergence of new ones.<\/p>\n<p>Earlier, Ethereum co-founder Vitalik Buterin warned that existing corporate attempts to create a metaverse <a href=\"https:\/\/forklog.com\/en\/news\/vitalik-buterin-existing-attempts-to-create-the-metaverse-are-doomed-to-fail\">are doomed to fail<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Widespread uptake of crypto assets in the metaverse could pose a systemic risk to financial stability and require robust protection of consumers&#8217; rights. These conclusions were reached by Bank of England researchers Owen Lok and Teresa Kashino.<\/p>\n","protected":false},"author":1,"featured_media":65629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[216,1353,810,1361],"class_list":["post-65628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-metaverses","tag-united-kingdom","tag-virtual-world-innovations"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=65628"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65628\/revisions"}],"predecessor-version":[{"id":65630,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/65628\/revisions\/65630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/65629"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=65628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=65628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=65628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}