InstaForex

November 3, 2021

Uh-Oh! China Not Comfortable With Metaverse, There Are Risks That Need To Be Monitored!

 Metaverse has garnered high interest lately, again after the announcement of the new name of social media firm Facebook to Meta.


Chinese giants are also not far behind in showing signals to join this wave, but Beijing has already given a negative signal with the presence of metaverse technology.


Analysts from the China Institutes of Contemporary International Relations through the study report "Metaverse and National Security" emphasized the impact of the metaverse on national security even though the technology could lead to the formation of part of the national economy.


Clearly they, the presence of the metaverse is only suitable to be explored for 5 to 10 years as the cost of related technologies is declining and the user base will be more mature.



Not only that, analysts also emphasize how the metaverse exposes the influence of technology, information and technology security, as well as societal issues to risk centrally.


Consequently, the development of the metaverse needs to be monitored with the presence of appropriate legislation and guidance to ensure the sustainability of national securities.


For the record, China's largest brokerage firm, CITIC Securities has said that the metaverse is starting to enter the exploration phase in the next 3 to 5 years, and it is unlikely it will become a human lifestyle in the next 20 years.


This wave will inevitably be carried by a cluster of major Chinese giants, covering aspects of gaming, social networking and advertising.


For example Tencent and Alibaba have registered trademarks related to metaverse. ByteDance, meanwhile, bought virtual reality (VR) needs company Pico for $ 1.39 billion on Aug. 29, signaling the company is also poised to join the metaverse market. Tencent has been a Chinese distributor for the metaverse game, Roblox since 2019.