Metaverse crypto use raises systemic risk, Bank of England says

The Bank of England (pic) has repeatedly warned that investors should be wary of engaging with cryptoassets, and be prepared to lose all their money when buying digital tokens. — Reuters

Widespread adoption of cryptoassets in a fully developed metaverse may pose a systemic risk to financial stability and would require “robust consumer protection” frameworks, staffers at the Bank of England said.

When built, decentralised digital worlds and platforms could host large volumes of real-world economic transactions carried out via crypto tokens like Bitcoin and Ether, BoE researchers Owen Lock and Teresa Cascino said in a blog post published on Aug 9.