The Bank for International Settlements calls on global regulators and central banks to jointly develop a regulatory framework for the Metaverse

The Bank for International Settlements (BIS) released a comprehensive report on February 7, issuing a stark warning about the possible fragmentation within the emerging metaverse and the risks of private company dominance, and emphasized the role of public policy in safeguarding the future of this digital ecosystem. Key role. The BIS stressed that without strategic oversight to ensure fair access, data privacy and strong consumer protection measures, the Metaverse’s promise of economic revolution in areas such as gaming, e-commerce and education could be compromised. In addition, the Bank for International Settlements calls on global regulators, central banks and policymakers to work together to develop regulations that promote innovation, protect users and maintain the integrity of digital transactions. The report advocates for more efficient and interoperable payment systems to meet user needs and highlights the importance of central banks and financial regulators in understanding and influencing the choice of payment instruments within the Metaverse. The Bank for International Settlements recommends strengthening efforts to promote interoperability of payment systems to prevent fragmentation and ensure that the Metaverse remains a competitive and inclusive platform. This approach is intended to avoid the digital space being dominated by a few large entities, which could stifle innovation and limit access. It focuses on the need for a regulatory framework that supports efficient payments, data privacy, digital ownership and consumer protection, thereby promoting a fairer and more accessible digital economy. The report also highlights the role of central bank digital currencies (CBDC) in ensuring that the Metaverse “remains an open, interoperable platform that is not controlled by any single entity.” (Cryptoslate)