One of the things that blockchain technology does is make a virtual world called Decentraland that you can visit. There is a whole other world out there, and JPMorgan says that it is the first bank to go there. In the virtual world called Decentraland, it has opened a bar and lounge where people can meet.
As well as the unveiling of the Onyx lounge, JPMorgan also released a paper about how businesses can find opportunities in the metaverse. The name of the lounge refers to the bank’s suite of permissioned Ethereum-based services.
Metaverse, which is a term for games, world-building, and entertainment, has made a big change in the last year thanks to things like non-fungible tokens (NFT). These, however, are not worth the same thing to everyone. During January, Samsung opened a store that looked like one in New York. Even though Barbados did not open an office in Decentraland until late November, they did.
JPMorgan’s Future in the Metaverse
Decentraland, The Sandbox, Somnium Space, and Cryptovoxels are the four main Web 3 metaverse sites that JPMorgan looks at in its metanomics report. The average price of a parcel of virtual land rose from $6,000 in June to $12,000 in December.
Credit, mortgages, and rental agreements could one day be available in the virtual real estate market, according to a report from JPMorgan. This would be similar to how these things are available in the real world. It said that instead of traditional finance companies, decentralized autonomous groups could manage collateral (DAO).
The report also said that people who work in the metaverse will make money. It pointed to a variety of entertainment providers, as well as apps like RTFKT, which was recently bought by Nike. Besides advertising, another big money-maker is likely to be in-game ads. A report says that in-game ad spending will hit $18.41 billion by the year of 2027.
The JPMorgan paper tried to show how the hype about the metaverse compared to the reality. It said that many things need to be better. Among them are how people use the game, avatar performance, and business.
In the report from the bank, they think that virtual worlds (each with its own population, GDP, in-game currency and digital assets) have a lot of things in common with the global economy. When it comes to the metaverse, we can use our long history of expertise in cross-border payments and foreign exchange, along with our large number of customers, to make a big difference.
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