Ouyang Rihui: metaverse will have its own economic and financial system and logic and be interconnected with the real world

From March 23 to 24, “2022 Zhongguancun forum series activities – the 9th Annual Meeting of Zhongguancun Financial Technology Forum” was successfully held. The annual meeting of the forum is guided by the office of the Executive Committee of Zhongguancun forum, Beijing local financial supervision and administration, China Internet Finance Association, Haidian District People’s government and Xicheng District People’s government, CO sponsored by Zhongguancun Internet Finance Research Institute, Zhongguancun Financial Technology Industry Development Alliance and China Internet Finance thirty people Forum (cif30), and supported by Beijing Zhongguancun International Convention and Exhibition Operation Management Co., Ltd. Ouyang Rihui, vice president of China Institute of internet economics, Central University of Finance and economics, attended the meeting and delivered a keynote speech on metaverse’s finance and metaverse of finance.

Ouyang Rihui said in his speech that metaverse is a virtual world parallel to the real world and interconnected. It is a transcendence of the real world. It is a new digital technology application scenario and economic and social form integrating virtual and real. Metaverse will have its own economic and financial system and logic to open up the liquidity of the whole metaverse world, and this system can be interconnected with the economic and financial system of the real world.

He pointed out that in metaverse’s finance, payment is the entry point and key. The essence of NFT is to create travel alienation and scarcity in metaverse, become a bridge between the real and virtual world, and connect payment and digital assets. There are two paths to the metaverse world of Finance: one is how to infiltrate the real finance in the metaverse world and find a new development space of finance; Second, attach great importance to the impact of metaverse thinking and technological innovation on financial development and improve customers’ immersive experience.

Ouyang Rihui put forward the following suggestions for the future development of metaverse Finance: first, establish and improve the metaverse financial system and formulate relevant rules and ethics; Second, metaverse finance serves the real economy, promotes the integration of digital economy and real economy, and creates a metaverse economy.

The following is the transcript of the speech:

Ouyang Rihui: I want to share a hot topic with you today: metaverse. I do economic and financial research. I want to talk about metaverse from the perspective of economics and finance.

Metaverse is the most popular, controversial and imaginative year in 2021. Both the government and the market pay close attention to metaverse. Some local governments in Shanghai, Hefei and Wuhan have written metaverse into policy documents. The people’s Bank of China issued the financial science and technology development plan (2022-2025). Although the word metaverse does not appear in this plan, it talks about accelerating the reconstruction of financial service intelligence, It is proposed to build multiple financing service channels, which is also an important scene of metaverse.

Overall, after the noise in 2021, so far, our market has become more and more rational, and more and more people believe that metaverse represents the development trend of future technologies and scenarios. Some platforms have also begun to explore metaverse, including our financial institutions.

My question from the perspective of economics is, what is the metaverse economic system? What is metaverse’s world finance and what impact does metaverse have on financial development? How can we use metaverse’s ideas and technologies to promote our financial innovation and development.

There are different opinions on what metaverse is. So far, there is no unified concept, and Internet giants have different understanding of metaverse. The biggest disagreement about metaverse is whether metaverse is the next generation Internet. More and more institutions and scholars believe that metaverse is the next generation Internet and metaverse is the third generation Internet. Pc internet is the first generation Internet, and mobile Internet is the era of 2.0. More and more people believe that metaverse is the era of 3.0 of the Internet.

At present, the most representative definition of metaverse is that metaverse is a virtual space parallel to and independent of the real world. It is an online virtual world that reflects the real world and an increasingly real digital virtual world. In this world, people can interact through virtual digital identity, and can create, share, CO govern, and even produce some economic activities. Therefore, I think metaverse is a virtual world parallel to the real world and interconnected. Metaverse is a transcendence of the real world and a new Internet application and social form integrating virtual reality. In this way, metaverse is not only a game, but also a new highland of global innovation competition.

For example, metaverse has many excellent projects. Investment, creation and games are the basic logic of the project application scenario and the way for users to participate in the metaverse track. More famous roblox, they built a stable economic system based on sandbox games. This platform has more than 1800 game experiences. The reason why Robles is successful is not how high the technical level is, but to create an efficient and fair economic cycle system. This kind of immersive experience and social scene led by player creation has the prototype of metaverse.

Since metaverse is an economic system, we should examine the metaverse world from the perspective of economics. Metaverse is bound to have its own economic and financial system and logic, so as to get through the liquidity of the whole metaverse world, and this system can be interconnected with the finance of the real world. In the economic system, transaction is the most basic economic activity. Of course, just like in the real world, money is the medium of transaction. If there is money in metaverse, it must exist in digital form. For now, the establishment of metaverse monetary system may be Zuckerberg’s dream. Is the research and development of legal digital currency related to metaverse? I don’t know However, the payment of metaverse should include legal currency and other digital currencies. Based on the current regulatory policies of digital currencies such as bitcoin in China, the contradiction between centralized currency and decentralized currency continues in the development of metaverse. In metaverse, how to play the legal function of digital RMB is a topic worthy of discussion.

In this way, metaverse’s finance is still based on the real world and cannot be separated from the real world financial system. In metaverse, the value of metaverse items can be easily anchored with the real world. In the future, cryptocurrency system may bring hundreds of millions and billions of users. If the universe can provide an efficient financial system, it is possible to establish a parallel economic system.

NFT is a non homogenous token. NFT is not a currency, but a contract and a certificate of ownership. NFT is the key to the door of metaverse. The irreplaceable nature of NFT enables it to anchor specific value and is a bridge between scarce assets and services. In fact, the essence of NFT is to create business travel for metaverse and create scarcity. In metaverse, people can copy digital creations infinitely. Scarcity could not exist. But with NFT technology, each item can be labeled with a unique label or given a special meaning, so as to become a unique thing. In this way, scarcity is created. As we all know, rare things are expensive. If there is scarcity, there will be value, and if there is value, there will be trading. After trading activities, we can establish metaverse’s trading system. For example, the current technologies such as digital watermarking, digital rights management and NFT are to create scarce technologies from an economic point of view. Because there is scarcity, there is transaction and value, that is to say, these technologies try to build scarcity in metaverse.

Metaverse is a world composed of a universe. It is not a world of harmony. There are exchanges and asset flows between different metaverse. How is the internal pass of metaverse directly linked to external assets? How to exchange trans cosmic values? What proportion should a person’s wealth in universe a be converted to universe B? Metaverse’s financial problems are far more than these. These problems are very complex.

There are several points that cannot be crossed in deep thinking. First, who will formulate these systems and maintain order, such as cracking down on counterfeits. How to effectively curb the motivation of counterfeiting? How to ensure the stability of metaverse’s internal monetary value and how to prevent arbitrage? Second, the use of blockchain in metaverse is necessary, but cryptocurrency is not necessarily necessary. How to achieve two leaps: how to cross borders between different metaverse? How does metaverse connect with real-world finance? Solving these problems is very important for maintaining the financial order of metaverse, otherwise it may become a financial risk of metaverse accidentally, and the impact should also be very huge.

At present, improving the advertising and content distribution functions and upgrading the experience of games, social networking, video and shopping are two clear industrial chains of metaverse. In the metaverse world of finance, I think there are two ways. The first way is how to infiltrate the real finance in the metaverse world? How to find new space for financial development and innovation. For example, follow the development path of metaverse and support the development of metaverse. At present, the development path of metaverse follows the development of games, art, work and life, and there are also explorations in the fields of agriculture and industry. For example, Ali in the field of agriculture and NVIDIA in the field of industry.

The second path is the concept of metaverse, or metaverse thinking. Director Wang rufang just talked about digital thinking. Metaverse should also have a metaverse thinking, and technological innovation will have an impact on the development of financial innovation. For example, foreign banks have made cutting-edge exploration of metaverse, and BNP Paribas of France, National Bank of Korea and Bank of America are all exploring. Domestic banks are also actively exploring. There are three representative banks, especially Baixin bank, which is the first financial institution of domestic banks to say that it wants to welcome metaverse.

Some people say that metaverse is the end of the digital transformation of financial institutions such as banks. For metaverse, finance still lives in the present and should not be disturbed by concepts. However, we should accept metaverse thinking and use metaverse technology. Financial institutions pursue safety, liquidity and profitability, and financial consumers pursue the maximization of investment and the minimization of capital use cost. In fact, experience is not the highest level of our financial pursuit. After all, finance is not a game or online shopping, Security is our unswerving pursuit of finance.

Today, metaverse finance has two different voices. One voice is whether the financial institutions represented by banks are metaverse. Several foreign banks and China also have their own banks to do metaverse, or is the metaverse we do now a marketing gimmick or the future of finance? I think the most important thing is that financial institutions should have metaverse thinking and improve customers’ immersive experience. In the future, VR and AR can further enrich the scope of online services, give customers a better experience and increase customers’ stickiness. Metaverse technology also plays a great role in financial digital transformation and innovative development. In recent years, with the continuous explosion of the concept of metaverse, digital twins, artificial intelligence and the Internet of things have been continuously concerned and pursued by the market, and innovative technology service enterprises have also been favored by the market in recent years.

According to the technology maturity curve, Metaverse is now in the bubble stage in the capital market and public discussion. The technologies adorable by Metaverse, such as brain computer interface and edge computing, are in the bud stage or bubble stage. AR and VR are progresses faster and are in the recovery stage.

Metaverse may realize the economic interconnection between the digital world and the physical world, so as to form a complete closed-loop economic system with high digitization and intelligence, and realize the integration of digital economy and real economy. From this perspective, metaverse can achieve a higher level of digital economy, that is, metaverse economy. However, only when the industry really uses metaverse to create a new production mode and production function, which brings a great leap in production efficiency, can the metaverse economic system established based on this be said to be established.

Since metaverse will have a great impact on mankind and society in the future, we must formulate relevant rules and ethics. Just now we saw that the financial technology development plan also places special emphasis on the ethics of financial technology. Metaverse should not only surpass, but also copy the real world. It needs to establish a running logic similar to the real world. For the establishment of metaverse rules, we should support some non-profit organizations, such as chambers of Commerce and associations, to study and formulate metaverse norms and rules.

I think the development of metaverse needs to go through three development stages: technological change, economic change and social change. According to Deloitte’s research and analysis, metaverse in independent industries can gradually get through the data and standards as early as 2031. The previous experts especially talked about the data problem. It is very important to realize the integration of metaverse and the world. It is still a long way to go to the stage of “the world will usher in structural change, and we can choose the way we want to experience the world and the people we want to interact with” described by Satya.

Finally, let’s pursue poetry and distance in the virtual world. During the epidemic, please take care and care for yourself and your family. Let’s welcome the arrival of metaverse world together.

Sina statement: all meeting transcripts are compiled in on-site shorthand and have not been reviewed by the speaker. Sina’s posting of this article for the purpose of transmitting more information does not mean that it agrees with its views or confirms its description.

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