The Mauritius Financial Services Commission (FSC), the regulatory authority responsible for the regulation, supervision and inspection of financial services has published a consultation paper on metaverse.
According to the commission, the metaverse describes what many expect to be the next significant paradigm for how citizens will use digital technologies and networks to interact, collaborate, and have various kinds of virtual experiences.
FSC likened the metaverse to the internet which it says has transformed the global economy by enabling new business models and disrupting traditional industries.
“As well, the metaverse has also the potentials to revolutionise economic systems by creating unprecedented virtual economies and digital marketplaces. It is predicted that the global market revenue from the metaverse will rise exponentially from $65.51 billion to $936.57 billion over the period 2022-2030.”
As a result of the fast emergence of the metaverse, the commission said it was acting proactively to ensure that the regulatory and business environments in Mauritius are appropriately ready and re-engineered, wherever appropriate, for the stakeholders of the financial service sector to engage in such new digital experiences and benefit, accordingly.
“The FSC Mauritius is, in that respect, issuing this consultation paper and inviting its industry stakeholders and the general public, to express their comments/feedback on the strategic developments and repercussions of the metaverse within the financial services industry in Mauritius.”
– FSC
According to the organization, following the outcomes of this public consultation, it will consider the establishment of a multi-disciplinary Working Group, in collaboration with the financial services industry, to further address the future policy and regulatory orientations of the Mauritius international financial center in relation to metaverse.
Mauritius, which is set to launch a Digital Rupee pilot later in 2023, sees the metaverse as being ‘highly relevant’ to financial services.
“Metaverse plays an important role in the trading of virtual assets within a decentralised environment, and creates mutual relationships with the financial services sector, impacting various aspects of investment, insurance, pensions and beyond.”
Some of the predicted use-cases from the metaverse in the financial sector include:
- The use of virtual storefronts
- The use of avatars to represent financial services to customers
- Virtual meetings
all while introducing a new arena for further financial sector innovation.
Nonetheless, there is the threat of virtual asset vulnerabilities, cyber-security risks, server outages, content moderation, and false information, the organization said.
The commission has invited respondents to the questions below that they consider relevant to their needs / circumstances.
List of questions to industry stakeholders and general public:
1. How do you envision the impact of metaverse on the financial services industry, in the next 1 and 3 years respectively?
2. What new or potential business opportunities do you see for financial institutions in the metaverse space?
3. Are there specific financial services you would like to see implemented in the metaverse, that are currently unavailable in the physical world?
4. How can the metaverse foster collaboration between financial institutions and other industries to create a more interconnected digital economy in Mauritius?
5. What do you think are the biggest hurdles that need to be overcome, to achieve widespread adoption of financial services in the metaverse?
6. What steps are being taken to ensure that financial transactions in the metaverse are seamless and user-friendly, and how can financial institutions ensure that users have a positive experience in the metaverse financial ecosystem?
7. Are there any particular aspect(s) which you would like to add/put forward for the consideration of the FSC Mauritius (or other competent authorities, by extension)?
Read/Download the full paper here.
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