Dubai’s Virtual Assets Regulatory Authority (VARA) recently opened its Metaverse-based headquarters in the virtual world of ‘The Sandbox’. VARA becomes the world’s first regulatory authority to make a debut in the Metaverse - a move that enhances the regulator’s role in new industries and allows easier facilitation of collaboration and engagement with stakeholders looking to enter into the metaverse space. Dubai through VARA is the first government authority to embrace virtual assets so comprehensively making it a leader for innovation in the future of both money and the internet. VARA is building a robust economic sector that will positively impact the nation’s economy and attract talent from across the region and the globe.
What is VARA and why is this important?
VARA’s role is to provide a framework for the virtual asset sector that is centered around scalability, consumer protection and market safety. This is done effectively through a progressive regulatory framework that does not consumer protection over innovation and builds an environment for businesses to prosper. Dubai’s move into the Metaverse is a sign that the metaverse future starts now.
This is a bold move and cements Dubai’s government resolve in Virtual Assets and Cryptocurrencies, as well as placing the Emirate at the center of this new technological wave. The digital economy is the future and over the course of the year Dubai has firmly placed itself as a global leader in this space. At the launch, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said, "Dubai maintains a leading position at the forefront of technological transformation. We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology.“
What is the Metaverse?
In simple terms, the metaverse refers to a digital world that combines different aspects from social media, online gaming, augmented reality and virtual reality. Cryptocurrencies are the method in which users can interact in this virtual world. The Metaverse is what is commonly sometimes referred to as Web 3.0 or the next generation of the internet - the future of the internet. The Metaverse will create a space online where users can interact in a wide variety of ways - the future of the internet will be an immersive experience that brings together the digital and physical world. Today - we can view anything online, tomorrow will be about creating an immersive online experience - in gaming, retail, real estate and virtual travel tours. This also extends to other sectors like education - imagine a virtual classroom where you do not need to compromise on the physical presence of leading professors but students are no longer constrained by geography. We can provide leading education across the globe even in the most remote areas.
All these concepts already exist on the internet but the Metaverse has created a more interactive use case for each of them. The aim is to always combine both the augmented & virtual realities to the digital world to allow users to have a far more immersive experience - whether that pertains to shopping, online education, gaming, or any of the other industries, with again crypto being the currency used for all these interactions online.
The Metaverse has begun to add real world value with large industry players like Facebook and Microsoft building in the metaverse to impact people’s daily lives. The concept is still in its infancy and there will be huge room for growth in areas and ways that are unforeseen for us today, as technology around us continues to develop.
The steps taken by the Dubai government will continue to foster the move into the digital world and place Dubai at the forefront of innovation. The potential across multiple sectors from gaming to entertainment to travel to education is huge. This will have massive economic benefits and will cater to the MENA region’s young population, allowing the region to prosper and develop all the young emerging talent to excel in the world’s new digital economy.
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