Amidst all the hype about the metaverse, observers are attempting to describe what it means for the banking industry. EuroMoney wrote:
“Incumbent banks are already being disrupted by blockchain technology, crypto assets, decentralized finance protocols, and distributed autonomous organizations. Now comes a new challenge. Goldman Sachs technology analyst Eric Sheridan estimates that with roughly 33% of the digital economy shifting to the metaverse and 25% market expansion, we arrive at a $12.5 trillion opportunity.”
“[Metaverse] transactions require some type of financial infrastructure. But traditional financial institutions may not be primary players in the Metaverse. Most are still hovering on the periphery of decentralized finance. When the Metaverse launches, digital banks will be in the perfect position to facilitate transactions. DeFi protocols will also quickly adapt and position themselves as major players.”
There are some big—and perhaps misleading—assumptions built into these comments.