The metaverse is a huge opportunity for blockchain tech and will lead to the widespread adoption of digital currencies, according to global head of thematic investment strategy at Bank of America, Haim Israel.

The metaverse is defined as a “hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets.” Platforms on the metaverse require users to buy cryptocurrencies to get involved in the virtual economy, and products and even virtual real estate can be bought and sold using non-fungible tokens (NFTs).

According to Bank of America’s Israel: “This is a massive, massive opportunity… You need the right platforms… that are definitely going to be a big opportunity for this entire ecosystem.” The metaverse will likely lead to a boom in development in the crypto world, the bank’s strategist added, and “we’re going to start using cryptocurrencies as currencies”.

As such, as crypto usage continues to rise, Israel said traditional payments companies will stand up and take notice, adding he sees room for “a lot of collaboration between the two”.

Increasing hype around the metaverse was bolstered in October on Facebook’s announcement it was changing its name to Meta to highlight its focus of bringing the metaverse into reality, FX Empire reports, pushing the value of metaverse-linked cryptocurrencies up.

deVere boss Nigel Green said at the time: “Facebook’s announcement once again underscores that the metaverse is not being seen by those-in-the-know as an ‘extension’ of the internet, but as its successor.

“It will become the entrance to almost all digital experiences and an integral part of most physical ones, meaning it will fundamentally change the way we live, interact with each other and do business.”

He added: “It will revolutionise economies, it will be the key to the creation of whole new generations of companies, and this is why the big tech firms are jumping in – no one wants to be left behind something so monumental.”