Citi has taken a deep dive into the virtual world in a March report titled “Metaverse and Money.” The banking giant has predicted an extremely bullish future for the Metaverse following a slew of high-profile firms signaling their intentions to enter online digital worlds in one way or another.
City forecast that the next evolution in the internet (Web3) will go beyond gaming to include commerce, art and media. According to City, such a vast ecosystem could become a multi-trillion-dollar market.
“The total addressable market for the Metaverse could be between $8 trillion and $13 trillion by 2030, with total Metaverse users numbering around five billion.”
Major investment required
Citi said that infrastructure development is necessary to reach such a high market value. Citi stated that to create the Metaverse content streaming environment, it will likely take a thousandfold increase of computational efficiency.
According to it, significant investments will be required in computing and storage as well as network infrastructure.
Citi stated that cryptocurrency would play an important role in the Metaverse and that they would need to coexist alongside existing forms of money.
“Different forms of cryptocurrency are expected to dominate, but given the multi-chain trend in the crypto ecosystem, cryptocurrency will likely coexist with fiat currencies, central bank digital currencies (CBDCs), and stablecoins.”
This will require regulation of the digital asset industry, any major Metaverse ecosystems, and the resolution of digital property rights.
The company also hinted that there are likely to be two forms of Metaverse – a closed version similar to Web2, which is what companies such as Meta (formerly Facebook) are aiming to create, and an open decentralized, community-governed Metaverse that will be the Web3 version.
In March, HSBC partnered up with The Sandbox in order to buy virtual land for esports and gaming development.
Virtual Fast Food
In recent weeks, a growing number of major brands have indicated their Metaverse intentions. Yum! Fast food chains are trying to grab a slice of Metaverse pie. This is the latest move by brands.
This firm owns Taco Bell and Pizza Hut.
It follows the likes of McDonalds, Dunkin’, and Hooters, all of which have recently filed for virtual food and restaurant-related trademarks.