JPMorgan’s CEO is Jamie Dimon. He is well-known for his anti-Bitcoin words. “I personally think that Bitcoin is worthless.” First, they slammed crypto. Now they are lookiJPMorgan Meets the Metaverse and Finds Business Opportunitiesng at ways of entering the metaverse. JPMorgan is coming around, and their interest in the metaverse is real.
There are plenty of reasons why JPMorgan wants to become involved in the metaverse. With JPMorgan, it’s easy to say, ‘follow the money’. Currently, the money is leading to the metaverse. As a result, it should come as no surprise that we find JPMorgan heading towards the metaverse. Below is a picture of the Onyx by JPMorgan shop in Decentraland.
The Metaverse and JPMorgan
Everybody and his dog is currently securing a place in the metaverse. Walmart, Nike, Verizon, Gap, Microsoft, Meta, and more. Each company and boardroom is trying to find out what the metaverse is. What is their position in it and what strategy can they follow? Moreover, JPMorgan is no exception. They already opened up shop in Decentraland: Onyx by JPMorgan. This is their blockchain department. JPMorgan also published a report on the metaverse. Very interesting, especially the fact that they look at their role in the metaverse.
However, first, here are some stats concerning the metaverse. This explains why the metaverse is such a hot item.
- Consumers spend each year $54.4 billion on virtual goods. That’s almost twice as much as they spend on buying music.
- Roblox alone has some 60 billion daily messages in their network.
- Second Life saw a GDP (gross domestic product) of $650 million in 2021. Creators received almost $80 million.
- The market cap for NFTs is currently $41 billion.
- Currently, The Sandbox boasts some 200 strategic partnerships. Atari, Warner Bros, and more are part of this.
- Over $1 trillion in yearly revenue expected in the future.
This looks most promising for the metaverse, and exciting times lay ahead. However, there are a few questions that need addressing. These questions relate to regulations and taxation. Also, count accounting and social infrastructure in. Is there a need for these functions in the metaverse?
Does the Metaverse Need Regulation?
Foremost, the metaverse needs to be open. On the other hand, it also needs regulation. The first question that comes to mind is what do we need to regulate? This question is already up for discussion. Most people agree that they don’t want a second version of the internet. That’s why Web 3.0 is so important. It will take the power of big tech away. All the Meta’s, Google, and Microsoft can participate in the metaverse. However, they should not have the same power over consumers as they currently have.
Some interesting questions pop up, though. Who will set the rules? Who is going to regulate these rules? The metaverse is not bound by borders as we know it in the real world. The metaverse is also accessible from all over the globe. How can companies stick to local jurisdictional requirements? Commerce and e-payments will have to face these rules. This leaves plenty of unanswered questions at the moment.
The tenant living in my Metaverse house disconnected their crypto wallet and refuses to pay rent
What are my legal options?
— John W. Rich (Fake Tech Exec) (@Cokedupoptions) February 16, 2022
Does the Metaverse Need Taxation?
One of the reasons many companies want their piece of the metaverse pie is because they can make money. When money is on the table, taxes are never far away. They have this uncanny habit of catching up all the time.
Currently, it is safe to state that most regulators don’t even know what the metaverse is. How can you make rules or tax something without knowing that it exists or know where to look? Well, unfortunately, this situation won’t hold on forever. Especially, tax offices will, in due time, be knocking on the metaverse door.
NFTs are a prime sample. Each time they sell on, the creator or publisher receives a cut of the sale. This is a ‘never before seen’ event. There is no regulation for his in place. Once tax offices find out about this, they will want their share of that specific cake.
Also, digital land ownership will become a hot item when discussing taxation. Prices of digital land in the metaverse went through the roof. Tax offices will also catch up on this, and digital land taxes will most likely become a reality in the future.
One solution is the blockchain itself. The blockchain registers each transaction. Audits may become obsolete, everything is in front of the tax office’s eyes. This will take time, though. However, whether we like it or not, taxation of the metaverse is in the making.
Source: The Sandbox
Does the Metaverse Need Accounting?
The first account firm has bought land in Decentraland. An accounting and advisory firm based in New York bought for almost $35,000 a virtual land plot. Prager Metis International LLC bought this in January 2022. They opened a three-story building. As a global player in the world of accounting, they see opportunity in the metaverse. The Sandbox saw PwC Hong Kong buy virtual land on their platform.
Accounting companies bring financial services to the metaverse. The metaverse offers new options and possibilities. Firms and individuals, who trade in the metaverse, may seek their advice. There will be demand for professional help for their bookkeeping.
Does the Metaverse Need Social Infrastructure?
The metaverse is already building a social infrastructure. More specific on a cultural and recreational level. Art galleries and sport stadiums are already a given. Also, amusement parks. Education and training are also happening in the metaverse. VR and AR make this easy and give it literally another dimension.
Most likely, there will be no need for social housing services. However, a virtual hospital is an opportunity that is still vacant. The metaverse can expect regulation in the future. Will that lead to police stations and other justice or public safety provisions?
JPMorgan Is Looking at P2E Options
JPMorgan considers the current virtual gaming space to be like our economy. They expect their financial experience to be of important for the metaverse. Hence, they concentrate on tokenization and digital identity. They want to empower a gaming ecosystem.
With this in mind, this includes:
- Bring bank-grade products to the gaming metaverse.
- Offering creators better ways to monetize their work.
- Gearing the metaverse up for global use of a variety of currencies and payment options.
The metaverse is an exciting place. However, before we get carried away, life is still lived in the physical world. The metaverse offers new options and possibilities. On the other hand, this will also call for functions like regulation or taxation in the future. Not to forget accounting or social infrastructures. It is still early days in the metaverse.
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