According to a report published by Goldman Sachs, banks seem to lean towards Decentralized Metaverses rather than the one proposed by Meta (Facebook). With the 2008 crisis, the significant and severe problems that the global financial system was going through and what, until then, seemed to be its backbone, such as banking, became apparent. From then on, nothing is the same.
Above all, the banks are no longer what they used to be. In addition, technology has made it easier for them to share the limelight with other actors and other ways of acting, such as that coming from decentralized finance. All this is in a context in which users’ mistrust of these entities dominates. It appears in the recent film of the animated series South Park, dedicated to a distant post-covid moment.
Decentralized Metaverses and Banks
Banks are themselves a centralized technology. Its organizational model is centralized, as the actors from decentralized finances do not finish denouncing. However, steps are beginning to be observed, perhaps only the first signs, of an approach by the banks to decentralization.
The financial institution pointed to Blockchain as the key to the Metaverse and Web3. Moreover, he considered Blockchain the most disruptive technology since the arrival of the internet. The words collected in a note published by Rod Hall, chief analyst of the entity in Hardware and Communications
Technology in the global investment research sector and one of the report’s authors, are striking. In them, he claims the decentralized nature of Blockchain, considering it the only technology capable of functioning independently of a centralized authority.
Blockchain as an Ally
Hall sticks his finger -in the wound or the eye, depending on how you look at it- when he says that, in the future: “users will be able to log in without the need for a third party, such as Meta, Google or Apple.” Below are a few examples:
- Centralization and dependence are in these large technology operators.
- The decentralization provided by Blockchain makes it possible to dispense with these operators.
- The banks have to opt for decentralization if they do not want to see themselves imprisoned and dependent on these operators.
- Banks have an ally in Blockchain.
- Another thing is, as has been pointed out, how they can deal with decentralization after a secular tradition is installed in centralization.
Cryptocurrencies, Massive in the Metaverse
Within the praise of Blockchain and cryptocurrencies, there is a special nod to the Metaverse in the note. It is defined as an immersive digital world created by virtual reality, augmented reality, and the internet.
For his part, the research director of Bank of America, Haim Israel, seemed to enter into a dialogue with the Goldman Sachs note and closed the circle by saying that cryptocurrencies may find an opportunity to become massive in the Metaverse.
Within the Metaverse, you can purchase, pay, and even invest with cryptocurrency. According to his words, the most sensible idea is to use virtual currencies within virtual worlds.
Morgan Stanley has also entered the debate and has defined Metaverse as the next major investment topic. So the next thing is likely to be today! Because it demonstrates that it is expanding exponentially, as per Criptonoticias.
Let’s put the conversation as a whole: Banks are betting on decentralized Metaverses to not depend on large operators with a centralized Metaverse, such as Facebook-Meta. So when banks move out of the hub, they look to decentralized technologies like Blockchain.