Quick take:
- The social media conglomerate argues the industry could be worth more than $3 trillion by 2031.
- The company wants the government to take a hands-off approach to regulate the industry.
- Meta wants the private sector, lawmakers, civil society, academia and a diverse group of people to collaborate in drafting metaverse policies.
Meta has turned to policy and regulation in a bid to get its metaverse strategy back on track. The leading social media conglomerate has asked the government to take a hands-off approach to regulate the metaverse.
In a document released on Friday through its website, Meta argues that fair regulation will promote innovation, thus unlocking the true value of the industry. According to the company, the metaverse could be valued north of $3 trillion by 2031, which it says would be a huge boost to the global economy.
Earlier this year, global market research company McKinsey & Co. estimated that the metaverse could be worth $5 trillion by 2030, while both Goldman Sachs and Morgan Stanley7 have forecasted a valuation of $8 trillion. Thus far, Citigroup has the highest target of up to $13 trillion.
Highlighting the impact of technological evolution on the global economy over the last few decades, Meta said this is a clear indication that the metaverse could be an arena of enormous economic opportunity.
“Early estimates indicate that the economic contribution of the global metaverse could be valued at more than $3 trillion by 2031. Already, places like Dubai, Seoul and Taiwan are advancing with plans to take advantage of the metaverse,” the company wrote.
The company also pointed to the consumer-facing platforms that have emerged as a real opportunity for metaverse companies, including education, training and remote work. This could be crucial in onboarding masses to the next iteration of the web.
The metaverse has also become an exciting opportunity for creators to create new revenue channels. The company has identified operability and portability as two key aspects of the metaverse that will make it an economic success, adding that the industry will be powered by the further adoption of web3 technologies.
Spotlighting the focus regulators have taken on the financial applications of the web3 technologies, Meta pointed out NFTs as a good example of non-financial blockchain-based assets that could drive the rapid adoption of the metaverse by providing a mechanism of asset ownership.
Therefore, Meta wants policymakers to take a technology-neutral approach that treats the industry like any other sector. The company is also calling on the recognition of decentralised systems as a way of unlocking new opportunities, and a collaboration between the public sector and the metaverse industry in developing a regulatory framework for the market.
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