Banking giant Citi has signaled that it is quite bullish around the metaverse, predicting that it could grow to anywhere between $8 trillion and $13 trillion by 2030. The bank also stated that it believes the number of users could grow to an incredible 5 billion.
Its latest research report included the banking giant’s bullish outlook about the metaverse.
The “Metaverse And Money” Report
On Thursday, banking giant Citi released a new Global Perspectives & Solutions report called “Metaverse And Money: Decrypting the Future. The report dives into the metaverse, analyzing its various aspects in detail. The report describes the metaverse, what it is, the infrastructure behind the metaverse, digital assets such as non-fungible tokens (NFTs), Decentralized Finance, and regulatory developments and how they could impact the metaverse.
Citi predicted an extremely bullish road ahead in the report, with high-profile institutions and companies signaling their eagerness to enter the metaverse. Citi also predicted that Web 3.0 and the metaverse would expand their scope beyond just gaming and encompass other spaces such as media, advertising, art, commerce, healthcare, and more. It further stated that an ecosystem this size could end up becoming a multi-trillion dollar market.
A Huge Opportunity
The report also described the growth and size of the metaverse economy, stating that the metaverse is on track to become the next generation of the online world. Citi stated in its report,
“We believe the metaverse may be the next generation of the internet, combining the physical and digital world in a persistent and immersive manner and not purely a virtual reality world. We estimate the total addressable market for the metaverse economy could grow to between $8 trillion and $13 trillion by 2030.”
Significant Growth In User Base
The report also stated that the total number of users in the metaverse could be around 5 billion. Co-author of the report, Ronit Ghose, Global Head of Banking, Fintech & Digital Assets, Citi Global Insights, stated,
“Expert contributors to the report indicate a range of users of up to 5 billion, depending on whether we take a broad definition (mobile phone user base) or just one billion based on a narrower definition (VR/AR device user base) — we adopt the former.”
Significant Infrastructure Development Required
The report also added that to realize the expected market value, the metaverse would require significant infrastructure development, such as an increase in computational efficiency. This would require investments in network infrastructure, computing, storage, hardware, and game development platforms.
Citi also hinted that there would be two Metaverses. A closed version that would be similar to the traditional Web 2.0. This is the type of metaverse that Meta is trying to create. The second version would be an open, decentralized, and community version of the metaverse.
Cryptocurrencies Will Have A Role To Play
According to the report, the role of cryptocurrencies in the metaverse cannot be understated, and that they would require to co-exist with existing forms of finance. This would require the regulation of digital assets and different metaverse ecosystems.
“Different forms of cryptocurrency are expected to dominate, but given the multi-chain trend in the crypto ecosystem, cryptocurrency will likely coexist with fiat currencies, central bank digital currencies (CBDCs), and stablecoins.”
Other financial institutions have also made similar predictions, with Goldman Sachs predicting that the metaverse could become an $8 trillion opportunity. Morgan Stanley and Bank of America have also had similar predictions about the size of the metaverse.
Other Institutions Exploring The Metaverse
Several other banks and financial institutions have dabbled in the metaverse. HSBC had recently announced that it has partnered with leading metaverse project The Sandbox and will be purchasing a plot of land in the Sandbox Metaverse, allowing it to engage with sporting enthusiasts from the areas of esports and gaming, and sports.
JPMorgan also forayed into the metaverse back in February, becoming the first bank to enter the metaverse by opening an Onyx Lounge in Decentraland. JPMorgan believes that the metaverse could bring in a revenue of around $1 trillion per year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.