Since its beginning, the metaverse has made significant strides toward creating the “real world” as a fully immersive virtual one. Blockchain technology, cryptos and decentralised transactions are an integral part of the metaverse. Businesses are exploring the possibilities of the metaverse as a marketplace.
However, many legacy banks are still hesitant. Given its extreme volatility, they are apprehensive of accepting cryptos as a measure of value due. There is also a perceived risk of fraud. Laws governing the crypto market are still nascent.
Some banks, however, are gingerly testing the waters. Bank of America and Wells Fargo do not allow crypto purchases on their credit cards. But they allow customers to buy cryptocurrencies using cash deposits or funds in their accounts. And only if through regulated exchanges like eToro or Wells Fargo Surepay. With many restrictions, conditions, and disclaimers in the fine print.
On the other hand, FinTech start-ups like Wirex and Bankprov are getting way ahead in the metaverse game. They offer crypto banking through technology driven conveniences. Customers have credit and debit cards, digital wallets, and mobile apps based on crypto balances. And despite FDIC not backing them, their customer base is expanding exponentially.
Trends in conventional banking already point to legacy banks lacking the agility to compete with fintecs, offering the convenience of technology driven banking. New consumer relationships are on the decline, especially amongst the millennials.
Legacy banks should start looking at cryptos to enlarge their presence in the exploding metaverse. Else this is another battle they face with fintechs. Who are already ahead in putting processes and products in place for when laws and regulations are inevitably made.
Decentraland’s metaverse ATM is a case-to-point. Though you cannot currently use money drawn from the Decentraland ATM in other metaverses such as Roblox, it is only a question of time. Real world collaborations will extend to the metaverse. We believe that soon, metizens will be able to draw cryptos from any ATM and spend it anywhere in the metaverse.
For marketers, the metaverse is a bold and exciting new frontier to expand the brand’s digital domain. Especially for BFSI companies that have traditionally been growth catalysts. And virgin territory for innovation in databases and analytics to understand the dynamics of metaverse marketing.