Metaverse is a big opportunity for cryptocurrencies, BofA strategist

BofA strategist Haim Israel says the metaverse space will see widespread use of cryptocurrencies in transactions within the virtual worlds being developed by the likes of Meta.

He notes that with “right platforms” needed to support the metaverse, crypto as a whole has a massive opportunity for further growth.

Bank of America strategist Haim Israel believes the metaverse offers a massive opportunity for cryptocurrencies, noting that the explosion in interest in virtual worlds and the race to see it developed provides a great springboard for crypto platforms.

He also notes that it’s going to be huge for cryptocurrencies as metaverse users would need digital assets for transactions.

The BofA researcher, who also heads the bank’s thematic investment department, said this in an interview with the Insider.

He told the publication that the metaverse will need to have the right platforms in place, a scenario he predicts could see the entire cryptocurrency ecosystem hit another level of development.

“I definitely believe this is a massive, massive opportunity,” Israel said.

According to him, it is the metaverse that will see people begin to really use crypto as currencies; an eventuality that means some cryptocurrencies will have a major ecosystem in which to dominate.

While many digital assets linked to the metaverse have soared in value over the past several weeks, the Bank of America strategist says these are likely too volatile to be used. As such, he predicts the space might see stablecoins take the upper hand, he added.

Israel also sees some of the existing payments firms take a keen interest in crypto as their use in the metaverse increases. He opined that it could be another opportunity for these companies to grow, noting that widespread use of digital currencies in the virtual worlds would drive companies towards more partnerships.

Several major companies, including Meta, Google, Microsoft, and Apple are all eyeing the metaverse ecosystem, an industry Grayscale Investments recently said could soon spike to a $1 trillion sector.