The metaverse will drive development of new platforms and wider adoption of cryptocurrencies.

Haim Israel, strategist at Bank of America (NYSE: BAC), said to Markets Insider that the metaverse represented a huge opportunity for the crypto ecosystem, blockchain and cryptocurrencies because there would be a huge rush to set up the platforms that underpin the new virtual world. (Markets Insider)

“I definitely believe this is a massive, massive opportunity,” said Israel, who is head of global thematic investment strategy at BofA. “You need the right platforms … that is definitely going to be a big opportunity for this entire ecosystem.”

Israel also predicted that cryptocurrencies will finally have their day in the sun because they would be extensively used on the metaverse – “we’re going to start using cryptocurrencies as currencies.” He qualified the remark, however, saying that because of the intense volatility of existing cryptos, the metaverse would likely adopt some stablecoins instead.

He also visualized a future where legacy payments processors would get more interested in cryptocurrencies because of their wide usage on the metaverse. “I see a lot of collaboration between the two,” he said.

Facebook’s pivot to the metaverse

The metaverse could be defined as a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you.

In September, Facebook (NASDAQ: FB) announced XR Programs and Research Fund, a two-year $50 million investment in programs and external research to develop metaverse products responsibly.

In October, the company renamed itself as Meta, in a bid to be seen as a company focused on the metaverse, the next digital frontier.

The renaming triggered a huge interest in the metaverse.

Grayscale on the metaverse

Grayscale Investments, the largest manager of digital assets in the world, recently issued a report on the metaverse, calling it a potential market opportunity worth over $1 trillion in annual revenue, and spanning advertising, social commerce, digital events, hardware, and developer/creator monetization.

Related Story: Grayscale’s Report Paints The Metaverse As The Next Emerging Market Investment Frontier

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