The Mauritius Financial Services Commission (FSC), the regulatory body overseeing the regulation, supervision, and inspection of financial services, has released a consultation paper focused on the metaverse.
The metaverse, as described by the commission, is expected to become the next significant paradigm for how individuals will engage with digital technologies and networks, facilitating interactions, collaborations, and a variety of virtual experiences.
The FSC draws parallels between the metaverse and the internet, noting that it has transformed the global economy by introducing new business models and disrupting traditional industries.
The commission highlights the potential for the metaverse to revolutionize economic systems, creating unprecedented virtual economies and digital marketplaces. It is anticipated that global market revenue from the metaverse will experience exponential growth, rising from $65.51 billion to $936.57 billion between 2022 and 2030.
In response to the rapid emergence of the metaverse, the FSC is taking proactive steps to ensure that the regulatory and business environments in Mauritius are appropriately prepared and restructured, as needed, to enable stakeholders in the financial services sector to participate in these new digital experiences and derive benefits.
The FSC Mauritius is inviting industry stakeholders and the general public to provide their comments and feedback on the strategic developments and implications of the metaverse within the financial services industry in Mauritius.
Following the outcomes of this public consultation, the FSC will consider establishing a multi-disciplinary Working Group in collaboration with the financial services industry to further address the future policy and regulatory directions for the Mauritius international financial center with respect to the metaverse.
Mauritius, set to launch a Digital Rupee pilot in 2023, recognizes the high relevance of the metaverse to financial services. The metaverse is seen as a significant player in the trading of virtual assets within a decentralized environment and has the potential to impact various aspects of investment, insurance, pensions, and more. Predicted use cases for the metaverse in the financial sector include virtual storefronts, the use of avatars to represent financial services to customers, virtual meetings, and the introduction of a new arena for financial sector innovation.
However, the FSC acknowledges potential challenges, including virtual asset vulnerabilities, cyber-security risks, server outages, content moderation, and the spread of false information.
The commission has posed a series of questions to industry stakeholders and the general public as part of the consultation process:
1. How do you envision the impact of the 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 aspects that you would like to put forward for the consideration of the FSC Mauritius or other competent authorities?
