In an Era of Metaverse and Virtual Reality, is it even wise to ban cryptocurrencies?

When the possibilities involving the Metaverse and Cryptocurrencies are beginning to show such a huge promise, it certainly won’t be prudent to ban cryptos altogether. We are at the nascent stages of implementing this technology and the layers of future usage are yet to unfurl completely.

Touted as the next big thing after the Internet, Metaverse is the newest buzzword gracing the virtual shores. Technically speaking, a Metaverse is an amalgamation of some of the biggest technological advancements of the 20th century. This includes aspects like Virtual Reality, Extended Reality, Augmented Reality as the major technologies which act as the foundation on which the concept of Metaverse has been incepted.

In simpler words, a Metaverse is an online environment that is the “internet version” of the everyday reality around us. You must’ve experienced a tad bit of this concept in the video games where you are a character who is doing all sorts of activities in the virtual world. The difference with Metaverse is that you will also be able to actually be in that space physically. Physically, in the sense, through headsets, VR goggles, and other devices you would become a part of that world.

You could actually live in that Metaverse space and carry out routine activities like hanging out with friends, attending concerts from your favourite artists, being able to participate in meetings, buy land, property, shop, learn, and everything in between. This alien world will also have its own currencies and economies. These will be used to trade and do commerce which would be the equivalent of the fiat currency that we use here. Cryptocurrencies are the dedicated means of trade in the Metaverse.

Also read: India is set to become one of the biggest players in the cryptocurrency world!

Some of the world’s biggest and most prominent tech companies have already started moving in this direction by investing heavily in the space and developing technology to create their individual Metaverses. This consists of names like Meta (formerly known as Facebook), Microsoft, Nvidia, and many more. Meta had acquired Oculus back in 2014 and is now being used to supply VR headsets to conduct virtual meetings through its software called Horizon Workrooms. This is simply one example of how these tech giants have recognised the future-oriented elements of Metaverse and have already started conducting operations in the field.

Nike has also entered this unique space where it will create its own NFTs and you can buy Nike accessories in the Metaverse for your character. The gaming companies have already built many applications in this space like Fortnite, Epic Games, Sandbox, Axie Infinity, Minecraft and many more. Some of the already functioning apps in the Metaverse are Decentraland (it has the official cryptocurrency namely MANA), The Sandbox (it has the cryptocurrency namely SAND), Star Atlas (with crypto ATLAS), and a whole plethora of other platforms.

The sole method to live and trade in the Metaverses is through cryptocurrencies. One is able to buy land and own property in Metaverse by using digital currencies or NFTs (Non-Fungible Token). The advantage of using cryptocurrencies is that the technology powering these transactions is based on blockchain technology. The blockchain, in itself, is decentralised in nature. Every transaction is transparent and the proof of it can’t be deleted. This makes such interactions much more reliable and secure without any involvement of humans.

When the possibilities involving the Metaverse and Cryptocurrencies are beginning to show such a huge promise, it certainly won’t be prudent to ban cryptos altogether. We are at the nascent stages of implementing this technology and the layers of future usage are yet to unfurl completely. We are only at the very first step and still, the possibilities seem infinite. It is quite clear that cryptocurrencies are largely unregulated. What the governments could do, instead of banning them entirely, is to put regulatory bodies in place.

This would ensure that there are no instances of misusing this technology. Apart from that, it would only be of great convenience if digital currencies could be recognised the world over and people could experience a decentralised uniform method of payment irrespective of where in the world they are transacting with.

The crypto bill has been proposed for the winter session of the parliament in India. It seeks to prohibit private cryptocurrencies. However, there is a huge positive in this as well. The government has realised the potential that this technology encompasses and therefore, it might consider the major cryptocurrencies like Bitcoin, Ethereum and the likes to be deemed as not private and thus a legal tender in India.

There are high chances of the government of India regulating some major cryptos and also supporting the technology in general. We sincerely hope that happens and the Indian population gets exposed to the technology powering future projects like Metaverse and much more.

Also read: What are NFTs? Why has it created a lot of buzz in the financial markets?