The Financial Services Commission (FSC) of Mauritius is considering integrating Metaverse into its payments ecosystem to position the country to reap the positive benefits of digitization.
The FSC made its position clear in a 22-page document. paper We explore the potential use cases and flaws associated with linking the digital world built on blockchain. To provide clarity on the planned integration, the FSC has launched a month-long public consultation, inviting stakeholders and academics to contribute to the discussion through his seven key questions.
The FSC’s questions ranged from the short-term impact of the Metaverse on the financial services sector to potential obstacles to providing financial services in the Metaverse. The European Commission said these responses will form the basis of the future regulatory framework guiding the integration of the Metaverse and Mauritius’ financial systems.
Participants have until November 30 to submit their responses, and the FSC plans to establish an “interdisciplinary working group” to spearhead its ambitious goals.
The FSC identified several use cases for Metaverse, noting that it could allow promoters to set up virtual stores, create immersive experiences, and provide stakeholders with the opportunity to simulate financial scenarios.
“Correspondingly, complex financial models can be visualized in 3D, enabling deeper understanding and decision-making,” FSC said. “Investment dealers, advisors and portfolio managers can effectively immerse themselves in realistic simulations, helping them predict market movements and make informed choices.”
Despite the seemingly obvious benefits of the Metaverse, the FSC paper took a balanced approach and highlighted the potential risks associated with the digital world. The paper addresses challenges such as digital asset vulnerabilities, cybersecurity risks, server outages, content management, and misinformation.
In addition to developing public consultations, the FSC says it will benchmark its efforts with models used in foreign jurisdictions. The FSC points to key initiatives being rolled out by the European Commission, Dubai, the UK, South Korea, Singapore, China and Indonesia to “uphold the core values of consumer protection and individual empowerment”. suggested that it should be reflected.
CBDC plans underway
Meanwhile, Mauritius plans to begin piloting a central bank digital currency (CBDC) in November after more than three years of preliminary research. Although not officially confirmed, the proposed CBDC could find use cases in the Metaverse and decentralized finance (DeFi) as part of Bank of Mauritius’ (BoM) plans to revolutionize payments in the country. There is a plan to do so.
“As central bankers, we cannot stress enough the crucial role CBDCs can play in not only protecting monetary sovereignty, but also supporting central banks and regulators on the AML/CFT front.” Said BoM Governor Harvesh Kumar Seegoram.
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