METAVERSE
This is echoed by Yilmaz , who says the success of CBDCs in the metaverse depends on both their technological design and integration with virtual platforms , while interoperability is also important across different metaverse platforms for CBDC adoption .
It could be that CBDCs don ’ t end up as a payment option in the metaverse at all , with Michaelson sceptical about central banks ’ interest in retail CBDC offerings , saying “ evidence of serious discussions on retail CBDCs is limited .”
He expands : “ Large central banks like the US Federal Reserve and European Central Bank ( ECB ) have not yet decided whether a CBDC would be necessary or valuable and speak primarily about wholesale use cases as the ones they would consider anyway . Central banks are currently only involved in wholesale settlements between financial institutions .
“ Whether there is a need to provide these settlements on blockchains ( which is what we mean by “ CBDC ”) is a reasonable question , especially if on-chain transactions continue to grow at large financial institutions .
“ That , however , has nothing to do with reinventing the entire purpose and operating model of central banks to become consumer-facing financial institutions . I think it would take a lot more than some trending metaverse worlds to make that happen .”
So , while the scope of CBDCs in the future remains murky , Yilmaz disagrees with Michaelson ’ s assessment , believing ‘ CBDCs may play a greater role as a payment method in the metaverse ”, in combination with “ cryptocurrencies and stablecoins , depending on their respective strengths and market dynamics .’
90 September 2023