💸New Financial System Construction Of Metaverse

The new metaverse economy has given rise to different business models, which will involve all aspects of human life. Also in the new economy, the cryptocurrency NFT and the decentralized finance DeFi will combine to build a new financial system. 2.1 Crypto NFT NFT means non-fungible token, which is a type of cryptocurrency that represents ownership of a scarce digital good such as an artwork or collectible. The three most common characteristics of NFT are uniqueness, provable scarcity and indivisibility, and most NFT cannot be split, so no part of an NFT can be purchased or transferred. NFT secures the asset's ownership, is easy to transfer and fraud-proof.

Currently used in digital art, games and collectibles, NFT has been around for years and re-emerged to the public in 2021 with the sale of Every Day: The First 5,000 Days, an NFT artwork by American artist Beeple, which was auctioned at US$69.346 million, which set the highest transaction for NFT digital artworks record.

In addition, the concept of metaverse is very popular, which finds more ways for the application of NFT. In the virtual world of metaverse, it’s necessary to create a currency that can be traded like in the real world and can guarantee the uniqueness and confirmability of the virtual assets, and NFT, the non-fungible token, is the right choice. The use of NFT in the metaverse world can eliminate counterfeits and clarify the ownership of items. NFT and the metaverse are mutually beneficial – NFT is the bearer of the asset value of the Metaverse, and the metaverse provides more application scenarios for NFT rather than just the existing art and game fields.

2.2 Decentralized Finance DeFi DeFi which is called decentralized finance, is a new financial service industry composed of many financial service robots. Different from the traditional financial system, decentralized finance is an organized market without middlemen. DeFi untlizes technologies such as the Internet, cryptography and blockchain to build an open financial system, which is equally open to all people. It does not require a central financial institution, and is more resilient and transparent than traditional finance. The most popular application of DeFi is the lending platform. In digital currency loan, it is easier, faster, more transparent and convenient to complete the mortgage loan, implement the loan terms and allocate the interest through DeFi's smart contract.

In the metaverse financial system, DeFi accelerates the digital transformation of financial services. The future metaverse economic system will inevitably break the barrier between fiat currency and digital currency, forming a pan-currency dual-loop financial system. However, due to the lack of liquidity in the NFT digital currency market, accurate valuation of NFT is not possible and its development in the financial system is limited. The new metaverse financial system combines DeFi and NFT, which represents the value of metaverse digital assets, to stimulate the vitality of NFT, financialize NFT, and promote the further prosperity of the NFT trading market. The combination of DeFi and NFT will build a more advanced digital and intelligent metaverse financial system that is different from the existing financial system.

2.3 The New Economy Of The Metaverse Leads The New Development Direction Of Finance

The metaverse new economy is a subset of the digital economy, referring to all economic activities that take place in the virtual digital world, such as the creation, trading, and consumption of digital products. The metaverse new economy has great potential for development, and a mature metaverse new economy guides the direction of financial development in a country or region.

Data becomes the new factor of production

As human society enters the metaverse era, data becomes another independent factor of production besides labor, capital and land. From macro to micro, from objective to subjective, from figurative to abstract, all information is being recorded comprehensively in real time, eventually forming a complete data chain that permeates all dimensions of different industries. Data-based acquisition, analysis and application give data exuberant vitality to achieve a high degree of intelligence and even wisdom in the whole world, which is crucial to the flourishing of the metaverse industry. The deep mining and value creation of massive data will become the core driving force of economic development.

The traditional business model is subverted

Metaverse breaks the boundary of enterprise production and operation, and the traditional business model is experiencing a disruptive change. Users participate in the production and value creation process of enterprises through free content production and free editing in the metaverse, forming a business ecosystem of co-survival and co-creation. The traditional business model shifts toward a decentralized, multi-dimensional and dynamic model, and the environment, time, and objects of transactions change significantly, with the rate of commodity exchange significantly accelerated and circulation links greatly reduced. Specifically, avatars will become the main participants in each scenario, and the purchase objects will mainly be crypto assets represented by NFT, and transactions across national borders and across time and space are becoming more and more common.

More fair and orderly distribution

The metaverse is a collective shared space where almost everyone is the creator in this world. Unlike the real world where the workload and contribution of each user cannot be calculated, the metaverse is built on a blockchain-based token system, where all economic and digital behaviors can be blockchainized and precisely quantified. If the profits are distributed according to different business stages, value chains and value coefficients of different industries based entirely on the blockchain, then every value contributor can be involved in the distribution, and the whole social distribution will tend to be more fair and move towards commonwealth.

2.4 Digital Finance Metaverse

The deep integration of digital space and physical space allows people to simulate, perceive and experience the real world in a different way, driving the financial industry to accelerate digital transformation, upgrading the fintech ecosystem and forming a new financial industry opportunity of "financial metaverse".

MetaFinance is a new financial form of symbiosis between the physical world and the mirror digital world realized by financial institutions based on the application of metaverse technology clusters. The essence of MetaFinance is to twin mapping the physical world through the digital world, realizing the interaction and integration of the physical world and the digital world, using the Internet of Things, VR/AR, big data analysis, artificial intelligence, blockchain and other new generation information technology clusters to carry out physical world’s customer simulation analysis and financial risk prediction in the digital world, and driving finance to better serve economic and social development with optimal results.

2.5 Assumptions And Visions For Future Payments

The future of payments we envision will be decentralized payments that allow any form of payment to exist, as long as there is public consensus on a value, it can be a payable vehicle. This will not be limited to paper money, gold, cryptocurrencies, new forms of currency, etc. The future payment will have the characteristics of decentralization, global use, multiple payment forms, low payment cost, and instant delivery and withdrawal.

Decentralization

Blockchain technology has created a desirable decentralized world. A global economic system built on decentralized payments will no longer have the problem of the powerful bullying the weak and the growing gap between the rich and the poor. Decentralized payments guard against the security risks and corruption risks that exist in the original economic system.

Global use

With the deepening of trade globalization, cross-border payments will become more and more frequent, and we believe that cross-border payments should not have a very obvious gap with domestic payments, which is extremely unfair to both sides of the transaction. The cost of domestic payments is insignificant, while the cost of cross-border payments is very expensive, which will not be conducive to global trade and the exchange of people around the world. The future of payments should give any country or region in the world the freedom to transact, with equal rights and obligations for cross-border and domestic payments.

Multiple payment forms

Multiple payment forms means that the payer can pay in multiple currencies, and the corresponding recipient can receive payments in multiple currencies as well, and both parties are not affected by the compatibility of payment systems, currency differences, and policies – the whole process is smooth and secure. You can use MBANK in any country and any region to use any kind of currency to pay for any kind of transaction, which will not be subject to any policy bias. MBANK facilitates the exchange of people in the world, relying solely on payments to link global value consensus.

Low payment cost

The security and trust of centralized payment requires multiple centralized institutions to work together to guarantee it. The centralized institutions pay the cost and effort, and naturally require users to pay for it. Decentralized payment is a kind of peer-to-peer instant payment, without any third party involved in it, which can also guarantee security and trust, and will save users a lot of payment costs.

Instant delivery and withdrawal

Under the premise that people are increasingly demanding for efficiency, future payments will certainly be more efficient than the current payment systems, with simpler payment processes and shorter settlement cycles. National banks intend to apply blockchain technology to clearing and settlement, and strive to improve performance on top of the existing timeliness. We believe that the goal of future payments is to greatly reduce user waiting time, both cross-border and domestic payments should reach second-level settlement capability, and users will not need to wait long for withdrawals.