Home » Payments In The Metaverse Will Be Huge, But They Won’t Be Be Based On Cryptocurrencies (Or People)

Payments In The Metaverse Will Be Huge, But They Won’t Be Be Based On Cryptocurrencies (Or People)

by admin

On Wall Street, JP Morgan says the demand for cryptocurrency use is a payment method. fall (And that was before last week’s event, when FTX’s antics tweaked the climate so that crypto winter replaced the crypto ice age.)

(I have to say I’m not convinced there was ever a mass market demand for cryptocurrency payments, but that’s another point.)

Meanwhile, Walmart on Main Street
CTO Suresh Kumar said of cryptocurrencies: Become an important payment tool The metaverse and social media are areas of great interest to retailers as it is where customers discover and learn about new products.

What these statements from people you should know seem to imply is that nobody pays with bitcoin
I will pay with bitcoin in the future. How can these opinions be reconciled?

Well, it depends on what the “cipher” is (as many of these stories are).

If you think crypto means cryptocurrency (e.g. Bitcoin and XRP)
) And these views seem to be at odds, with what Wall Street says and what Main Street says is one thing.

However, if we think of cryptocurrencies as a decentralized means of trading digital assets, then there is no contradiction. In fact, people pay each other in the Metaverse using tokens exchanged using decentralized financial protocols, but those tokens are not cryptocurrencies. Valued by supply and demand, it will be tokens linked to real assets such as dollars, gold, and Walmart points.

This is an interesting area because payments in the metaverse are going to be a big deal.Deutsche Bank Expert predict the future Multiple metaverse ecosystems exist (with interoperability through digital identities, credentials, and asset ownership). They even go so far as to say that this could usher in the next e-commerce revolution as it gains traction and becomes more mainstream with technological advances.

(They also point out that this means financial services will play an important role in these new ecosystems. If these metaverse ecosystems are really like Fornite wearing a NFT Gucci hat or buying ammunition with Ether. If only Call of Duty could, but in the metaverse I envision, like Deutsche Bank, every form of financial service needs to function properly as a virtual world, where horrifying digital objects are swayed between entities based on reputation. traded.)

Whether you agree with the management consulting firm McKinsey, who claims it The Metaverse is “too big for businesses to ignore….could be the next iteration of the Internet”.By 2030, Finn will know if more than $5 trillion will be spent annually (exceeding Japan’s GDP). Tech companies definitely need a strategy for this new economic sector. There will be money in the Metaverse, but it will be a digital object (stablecoins and various alternative tokens), not Dogecoin.

Metamoney is more radical than you think

If this view is largely correct, what will those digital objects become? When you pay your car insurance premium in the Metaverse, you first use Digital Sterling. But in the long run?

I have long believed that in this fully online world, where digital objects can be continuously traded in a liquid market, the need for money as an intermediary will diminish. It may not bother some, but remember Matt Harris, a partner at Bain Capital.
One of the big names in the Ventures and fintech investment community predicted what this technology could mean here at Forbes. the end of money as we know it Because “our assets will always be 100% invested” in the future.

Matt’s view is that transactions take place through the movement of these digital objects between trading partners without monetary intermediation, and in my option he is completely correct. era of
The dollar is looming.

(IBM, in de Bono’s early 1990s thought experiment, may issue “IBM dollars” that can be redeemed for IBM products and services, but not in other companies’ funds or in a liquid market.) They can also be exchanged for other assets, i.e. what they call digital objects implemented using tokens. I came to the conclusion that there is no need to exchange it for money.)

It may seem difficult to imagine a metaverse full of digital objects continuously traded between digital identities, but this is not a transaction between people, it’s the story of Before Babylon, Beyond Bitcoin. Remember, as written, it’s a trade-off between what Jaron Lanier dubs “economic avatars.” ”. This is a world of bot-to-bot trading where bots can negotiate to find ways to evaluate and fund deals.

Dr. De Bono’s vision is that “a pre-agreed algorithm decides which financial asset is sold by a purchaser of a product or service, depending on the value of the transaction…the same system can be used as the demand for financial assets. We match supplies, determine prices, and settle.” Dr. De Bono and Matt Harris are visionaries that I take very seriously. So if they’re right about this version of the future, what does it mean for your current fintech strategy?

Now remember that Matt went on to write that “credit risk becomes easier when identity is resolved”. Recall also that Dr. de Bono predicted that this kind of ecosystem would rely on “immediate verification of counterparty creditworthiness.” In short, reputation.

The metaverse economy is a reputation economy and cannot exist without a digital identity infrastructure.

wallet wars

A consistent image emerges. Digital objects provide the scarcity that creates markets, and reputation provides the confidence to trade in those markets. These building blocks align the visions of Wall Street and Main Street, both relying on digital identity infrastructure. This is why there is so much activity going on in this area right now.

The technology of decentralized identities and verifiable credentials is evolving alongside the technology of decentralized finance and tokens, creating dynamic (and, frankly, unpredictable) new relationships that will remake the financial system. .

If this diagram is correct, I must say that I sincerely look forward to reader critiques, which highlight the important role of wallets in the next generation of commerce.

In fact, it rather refers to the world of smart wallets. This is either too tedious (e.g. paying for parking) or too mysterious (e.g. deciding whether to put extra money in a tax-efficient cash savings account or in one account). means a purse with associated intelligent agents to do the work of a financial donkey. UK stock based) most of us have to deal with. Inevitably, the Metaverse will be an environment where the vast majority of transactions take place between smart agents executed through wallets exchanging digital objects.

Payouts in the metaverse are going to be huge, but they probably don’t have much to do with cryptocurrencies (or people).

Related Posts

Leave a Comment