THE PRESENCE OF COMMERCIAL BANKS IN METAVERSE’S FINANCIAL ECOSYSTEM: OPPORTUNITIES AND RISKS

Muhammad Raffi Hasta Anggara (), M. Reihan Davie, Mahanani Margani, Made Ayu Aristyana D and Mahdiah Aulia
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Muhammad Raffi Hasta Anggara: University of Indonesia, Indonesia, Indonesia
M. Reihan Davie: University of Indonesia, Indonesia, Indonesia
Mahanani Margani: University of Indonesia, Indonesia, Indonesia
Made Ayu Aristyana D: University of Indonesia, Indonesia, Indonesia
Mahdiah Aulia: University of Indonesia, Indonesia, Indonesia

Journal of Central Banking Law and Institutions, 2022, vol. 1, issue 3, 405-430

Abstract: The metaverse has been widely discussed as it is believed will affect almost every sector, one of those is the financial sector. The financial sector developed in the metaverse will likely be based on decentralized finance and blockchain technology, the latter of which is the primary source of the development of cryptocurrency and stable coins. Other than cryptocurrency and stable coins, CBDCis also predicted to emerge as one of the payment instrument options used in the metaverse. The presence of these technologies has formed the unique financial ecosystem in metaverse, differentiating it from the existing ecosystem which is characterized as centralized and traditional finance. The recently developed Meta Fi has created the question of whether commercial banks, as one of the most important financial institutions in the current financial ecosystem, will be able to penetrate and keep its relevance in the Meta Fi. This research will attempt to answer this question by explaining Meta Fi, its characteristics, and how commercial banks could co-exist alongside blockchain-based service in Metaverse.

Keywords: commercial banks; decentralized finance; financial sector; metaverse; metaverse finance (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:idn:jclijn:v:1:y:2022:i:3b:p:405-430

DOI: 10.21098/jcli.v1i3.28

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