- The FSC has decided to dedicate November to gathering comments on the Metaverse.
- Since 2018, FSC Mauritius has taken active steps to establish a legal framework that protects its citizens.
- In February 2022, the FSC Mauritius officially enacted the Virtual Asset and Security Token Offering Services Bill.
The fourth industrial revolution has brought about a radical shift in technology. Blockchain, AI, and Digital assets have redefined the concept of centralization and threaten to do away with the idea altogether. Through this revolutionary shift, Africa has carved out a permanent spot for itself. The continent’s slow-paced adoption of technology has acted in its favor.
Today, Africa has provided developers, innovators, and investors with an acutely positive environment for 4IR technology. Amid this trend, several nations are battling it out to dominate this new wave of change. Africa’s Big Four, Kenya, Nigeria, South Africa, and Egypt, have inspired a rapid change in the region’s digital economy.
Amid this growing trend, Mauritius’ digital economy has caught the eye of many investors. The region’s positive outlook on decentralized finance(DeFi), blockchain applications, and digital currency has significantly propelled its digital transformation. In recent news, the Financial Services of Mauritius has opened up a dialogue to discuss the utilization of the Metaverse in its digital economy. If the FSC Mauritius manages to integrate this blockchain application into its legal framework, it will overhaul its innovation considerably.
Overhauling Mauritius’ digital economy through the Metaverse
The Metaverse has become one of the grand achievements of Web3. In several articles, we at web3africa.news have highlighted how technology is a significant representation of the goals of Web3. Its concept has the capability of overhauling any digital economy if implemented rights. Unfortunately, in recent times, its distribution globally has presented quite a bit of an issue. Despite this drawback, many governments and organizations continue to utilize its redefining concept to scale businesses and economies.
Mauritius’s digital economy is among the few African economies to embrace blockchain technology. In recent news, FSC Mauritius has taken a step to include the Metaverse in its legal frameworks. The FSC Mauritius started collecting feedback from industry stakeholders and the general public. This ensures the application of the Metaverse does not hinder the progress of Mauritus’ digital economy. Generally, they posed several questions regarding the inclusion of the Metaverse within the financial service industry.
Thus, the FSC has decided to dedicate November to gathering comments on the Metaverse. This includes gathering on several strategic developments and repercussions on the Metaverse. The FSC Mauritius also intends to ensure that the regulatory and business environment can take appreciative measures for the metaverse adoption.
The undefined regulatory frameworks surrounding this blockchain application have made it nearly impossible for any government to integrate its redefining concepts. Thus, rather than waste millions of research funds, the FSC Mauritius has asked for the aid of those who directly interact with this blockchain application.
They commented, “As the nations across different continents increasingly continue to take steps forward, a future can be anticipated whereby the metaverse will transform into a space that not only unleashes boundless imagination but also upholds fundamental values of consumer protection and individual empowerment.”
Below is the list of questions the FSC Mauritius released. They did so in the hope of gaining additional insight into integrating the Metaverse into Mauritius’ digital economy.
List of questions to industry stakeholders and the general public
- How do you envision the impact of Metaverse on the financial services industry in the next 1 and 3 years, respectively?
- What new or potential business opportunities do you see for financial institutions in the metaverse space?
- Are specific financial services you would like to see implemented in the Metaverse currently unavailable in the physical world?
- How can the Metaverse foster collaboration between financial institutions and other industries to create a more interconnected digital economy in Mauritius?
- What are the biggest hurdles we must overcome to achieve widespread adoption of financial services in the Metaverse?
- What steps are being taken to ensure that monetary transactions in the Metaverse are seamless and user-friendly? In addition, how can financial institutions provide users with a positive experience in the Metaverse financial ecosystem?
- Are there any particular aspect(s) you would like to add/put forward for the consideration of the FSC Mauritius (or other competent authorities, by extension)?
Dominating Africa’s blockchain ecosystem
Mauritius’ digital economy is among the few African economies to embrace blockchain applications. Since 2018, FSC Mauritius has taken active steps to establish a legal framework that protects its citizens and bridges the gap between digital assets and economic growth. The FSC first recognized digital assets and an asset class for investment by expert investors. In 2019, they published the Financial Services (Custodian Services (digital asset) Rules 2019 (CDA Rules 2019) to regulate and safeguard digital asset distribution across the nation.
The increased rise of blockchain applications throughout the continent has inspired the regions to adopt the trend. In February 2022, the FSC Mauritius officially enacted the Virtual Asset and Security Token Offering Services Bill. This was a legal framework highlighting a comprehensive guideline for virtual assets service providers on initial token offerings.
It ensured the FSC oversaw every digital asset provider nationwide without infringing on its fundamental concepts. Despite its favorable regulatory framework, the DeFi adoption rate could be much faster. Fortunately, the region has made significant progress after announcing the possibility of a CBDC.
The governor of the BANK OF Mauritius, Havresh Kumar Seegolam, said, “As a central banker, I need not stress upon the determining role that CBDCs can play. It protects monetary sovereignty and central banks and regulatory authorities on the front of AML/CFT [Anti-Money Laundering/Combatting the Financing of Terrorism].“
By posing this question concerning the Metaverse, Mauritius’ digital economy will experience a significant boost inactivity. Directly asking those who have used DeFi platforms, blockchain applications, and the Metaverse, the FSC Mauritius will attain the first information on how best it will service them.