White House Recommends Creating a U.S. Digital Currency

Adigital currency for the U.S. is a priority for the Biden administration, which says it will enhance the nation's global financial leadership. It released today a framework for regulating digital assets, such as cryptocurrencies and other items of value that exist only digitally. Digital asset handling is easier with this framework, and fraud resistance is ensured. Government agencies have been working on creating the framework since March 22, according to President Biden, Executive Order 14067, "Ensuring Responsible Development of Digital Assets."

The Digital Dollar: An Exploration

The framework proposes creating a U.S. central bank digital currency, or CBDC, a digital version of the U.S. dollar. As a fact sheet released to describe agency responses to the executive order, the CBDC could facilitate cross-border transactions, create technical innovations, and facilitate efficient payment systems. As a result of the discussion of a digital dollar, there have been unfounded accusations that the government will control digital assets. According to Politifact, "Executive Order 14067 does not allow the federal government to control money electronically." the federal government may be able to "turn on and turn off your money" when EO 14067 is implemented, according to a TikTok post. A fractional-reserve banking system enables the transfer of electronic U.S. dollars from one financial institution to another. To comply with the Fed's requirements, banks must hold only a fraction of their deposits. No bags of currency are involved in transfers; they take place electronically.

Similarly to the physical dollar, a hypothetical digital dollar would be regulated and backed by a central bank. In many statements, Jerome Powell, the Federal Reserve Chair, has said that digital currency under a central bank would eliminate the need for cryptocurrencies.

Cracking Down on Fraud

Since the creation of crypto, illegal activity has been a concern in the digital asset space, resulting in all but around 16% of the population avoiding it. The following is included in EO 14067: "The President will consider contacting Congress to amend the Bank Secrecy Act (BSA), antitippoff statutes, and laws against unlicensed money transmitting to apply to digital asset providers explicitly." There are other options, too, including raising penalties on unlicensed transmission of money and allowing the Department of Justice to prosecute crimes involving digital assets wherever they occur.

" We will continue to monitor the development of the digital asset sector and the risks associated with illicit financing, seeking to identify any gaps in our legal, regulatory, and supervisory regimes," according to the framework released today. By the end of February 2023, Treasury will undertake a risk assessment of illicit finance about decentralized finance and nonfungible tokens as part of thiseffort.."

Consumer and business protection

Creating a U.S. CBDC while dealing with fraud and illicit activities could based on the framework, "enable a more efficient payment system, provide a foundation for further technological innovation, facilitate faster crossborder transactions, and be environmentally sustainable." By increasing the accessibility of financial services to a wider group of consumers, the framework could also promote financial inclusion andequity.

Several government agencies have developed Policy Objectives for a U.S. CBDC System, which reflect the federal government's priorities for a potential U.S. CBDC System, in addition to the Treasury's illicit finance risk assessment by February and its nonfungible token assessment by July.

and NFTs are a Driving Force for Mainstream CRYPTO

Adoption

The gaming space has attracted some of the biggest names in Silicon Valley. This year's total investment in the sector is outpacing last year's by around 33%, even through the crash. Franklin Bi, the director of portfolio development at crypto hedge fund Pantera Capital, said blockchain gaming is at the perfect time to "take off."

Historically, the gaming industry has been characterized by new technology, new business models, and user experiences. Crypto and NFTs have enabled all of those opportunities.

Several household names have jumped on the blockchain gaming bandwagon. A $69 billion deal was announced in January between Microsoft Corp. and Activision Blizzard Inc., the publisher of Minecraft and Call of Duty. Satya Nadella, Microsoft's CEO and chairman, says the deal will help develop "building blocks for the metaverse."Satya Nadella, Microsoft's CEO and

chairman, says the deal will help develop "building blocks for the metaverse."

The gaming market is valued at almost $200 billion this year, making it possible to onboard a critical mass of users through blockchain games. Industry experts discuss how this nascent space can reach a broad audience in an Insider interview.

Owning in-game assets with NFTs

Crypto adoption may be driven in part by gaming, according to Pavel Bains, CEO of blockchain startup Bluzelle. In a statement, Bains said that his three children grew up playing Fortnite, Minecraft, and Roblox. "They already know how to acquire ingame assets and virtual currencies." Those virtual goods can be converted into tangible assets through the power of crypto in the hands of dedicated gamers. In addition to learning valuable finance lessons, it's a natural progression for the upcoming generation during." The skins or virtual cosmetics players purchase for their characters are a common part of traditional games.

According to the trading platform DMarket, this market generates roughly $40 billion annually. In contrast to traditional gaming models, NFTs are owned by the studio rather than the buyer.

With the advent of blockchain games, virtual goods and items can now be put on the blockchain

and owned by you," Justin Kan, a cofounder of NFT marketplace, explained. "In exchange for letting go of control, these companies get a more robust economy."

"Owning digital assets motivates players to play their favorite games," said Kyu Lee, a partner at venture capital firm CRIT Ventures. Using blockchain technology, NFTs verify a player's asset ownership since it is recorded on a public ledger. Participant tokens can instead be stored in their crypto wallets or with another decentralized custodian instead of with Web2 gaming studios.

People enjoy playing games because they are entertaining.

The fact that gaming is entertaining and accessible to a wider audience makes it an effective onboarding tool, according to Stephen's Shiti Rastogi Manghani. The "move-to-earn" app STEPN allows users to earn game tokens by exercising.

Manghani, the startup's CMO, says that anything that is fun, social, and engaging will attract users. "I have seen this in multiple industries like retail, e-commerce, and social media. It fulfills basic human needs. Gaming apps or utility apps that meet those needs are going mainstream. A benefit to users is the cherry on top."

Video games have long been a staple of younger generations, especially. UnCaged Games chairman Shahaf Bar Geffen says games have always been at the forefront of emerging technologies because humans love to be entertained. "Alexey Pajitnov created Tetris to make computers more approachable and less intimidating," Geffen said.

The roadblocks to blockchain gaming.

Every new technology - especially one in a volatile market - comes with obstacles. Blockchain gaming has also shown signs of slowing down amid a crypto bear market. In Q2 of 2018, DappRadar reported that Axie Infinity, the game with the largest user base in the industry, had 83% fewer participants than in Q1. The decline in players was attributed to a $650 million hack on its Ethereumlinked sidechain, Ronin.

Although gaming activity still dominates the overall landscape, several top blockchain games are showing weaknesses, according to the DappRadar report. Off-chain Labs CEO and cofounder Steven Goldfeder says "

Goldfeder states, "a good blockchain game should be a game first, and a blockchain application second. We believe incorporating blockchain technology should be additive, enhancing the gaming experience for users who wish to engage with the blockchain but not limiting access to those who simply wish to play. In order for blockchain to gain mainstream acceptance, it must be able to operate in the background, which requires ease of onboarding, fast confirmation times, and low transaction costs that are abstracted from users."

"usability is a potential barrier to mainstream adoption. Do people just play for the returns and financial rewards, or is it fun?

—Crypto Weekly

It is the Metaverse that will shape the internet of the future. A significant change is taking place in the history of humanity, and its effects will carry through into the Metaverse.

When the internet was first developed, we used it for simple things like e-mail and chat. Eventually, we began using it for more complex things like financial transactions and making purchases. Now that virtual reality is here, we're entering a new era in which the Metaverse will be our primary interaction tool.

When we move into the Metaverse, the possibilities are endless. Without ever leaving our homes, we will be able to buy clothes and cars and travel worldwide. All of this will be possible in a fully virtual environment, unlike anything we've seen before, making it far more realistic than anything we are familiar with today.

Metaverse-based communication and interaction are expected to eventually replace the internet as our primary mode of communication and interaction. As a result, the Metaverse could have a far greater transformative impact than the internet since it represents a fundamental shift in how we use technology.

Some believe that the Metaverse will simply enhance the internet, making online interaction even more engaging and compelling by providing a richer, more immersive experience. There's no doubt that you've heard that before, and like so many other cutting-edge technologies, it's hard to predict how the Metaverse will develop. Surely with such a seismic shift, there may be many things that will remain unforeseen until they happen. We can scarcely imagine how technology will transform the way we interact and communicate with one another. It will change everything without adoubt.

How will the Metaverse evolve? It will likely become our primary

method of interacting with the world as time passes. Our main method of accessing information and conducting transactions will be through the Metaverse rather than traditional websites andapps.

Augmented and mixed realities will dominate future Metaverses. The real world is more appealing to those who prefer it over a virtual one. Augmented and mixed reality allows users to experience elements of the virtual world without leaving the real world. While full immersion VR will still exist, it will be mostly used for gaming and entertainment. Most people don't want to hang out in an entirely virtual environment. They prefer having layers of reality that they can interact with along with their virtual experience.

For several reasons, virtual reality will not be as popular as augmented and mixed reality in the Metaverse. The more realistic nature of augmented reality is the first advantage. It allows for better mental orientation when real and tangible aspects of reality are mixed with digital augmentations.

We are fully surrounded by a computer-generated reality with virtual reality, creating an overpowering and alienating experience. However, you can still see and interact with the real world with augmented and mixed reality. Compared to virtual reality, the two together are more user-friendly. This can be accomplished by overlaying digital content over real-world objects in augmented reality. Videos, 3D objects, and text can all be included. Consequently, people can experience some aspects of virtual reality while still interacting with the real world.

Virtual reality provides a better, more engaging experience while maintaining a connection with reality. As a result, it is likely to become the dominant form of VR due to its wider marketability. Metaverse Development Must Be Democratic Ecosystems of the future must serve the common good better than the current web in which large corporations dominate. In these large corporations, profits are the only concern, and the public good is unimportant to them. Not necessarily do making profits and the public's good coincide, yet they may.

Companies' primary goals historically are to make as much money as possible, and if it kills people, so be it. This predominant philosophy is demonstrably undeniable throughout history. This is not what the Metaverse should be about. In Metaverse societies, as in any public society, there must be systems of agreed-upon rules and expectations. People worldwide should be able to share knowledge and ideas through the Metaverse. Creativity and collaboration should be encouraged among people who are not coerced into participation or rewarded by profit. In a profit-driven metaverse, however, this is unlikely to happen.

Metaverses should be built based on cooperation and community, not greed and self-interest. A metaverse that is open and accessible should be available to everyone, regardless of their income or social status. Rather than being controlled by a few powerful corporations, the Metaverse must be free and democratic.

In essence, the Metaverse is a digital space in which people interact and create. In other words, it is a blank canvas on which people can paint their own realities. It will be shaped by the people who inhabit it, just like any other space. People will be able to express their desires and fantasies in the Metaverse, which will magnify their human traits. People will be able to play dress-up, pretend to be celebrities, or explore new worlds in the Metaverse.

The Metaverse will likely magnify human traits because it will give people more freedom to act however they want without fear of punishment. The result could be good, such as people being more kind and helpful, or it could be bad, such as people becoming more aggressive and violent. Humans will need to decide which path they want to follow.

Verified Identities are Needed for the Metaverse to Function rust is essential when interacting with other users in the Metaverse. It would be difficult to engage in trusted interactions without verified identities. To open a bank account or board a plane, we need verified identities in the real world. Users must provide biometric data to establish their digital identity to accomplish this. It is possible to verify the identity of a user by verifying that this data corresponds to the avatar they are using. A facial scan or fingerprint could be used in this regard. Passwords and PINs are also ways to verify identities.

There are several reasons why digital identities should be verified. A first benefit is that it enables users to trust that the people they interact with are who they claim to be. It is particularly important in a virtual world where anyone can be anyone. The second benefit is that it protects the privacy of users. We can protect sensitive information and services by verifying identities. As a final benefit, it ensures the security of user transactions. Fraud and theft among Metaverse users will be radically reduced by verifying the identity of both parties.

Safe and secure metaverses require verified digital identities. Using them allows users to trust one another and conduct transactions safely and securely. The Metaverse is coming and will have a major impact on the future. The potential uses for virtual, augmented, and mixed reality are endless, and we've just seen a glimpse of what's possible. How will the Metaverse look? What will it mean for the way we live and work? Nobody can answer these questions for now, but one thing is certain – the Metaverse will be big.