How Should CFOs be Embracing the Metaverse?

The world of VR is bursting with opportunity. Further than a form of entertainment, VR can be applied to exceed customer expectations and gain an advantage over competitors in lots of different industries. And finance is no different.

What is the metaverse?

Put simply, the metaverse is a connected network of 3D worlds that uses VR and augmented reality (AR) to create a network of people that interact in ‘richer ways’ than the traditional, flatter internet. Conceptualised by Meta (once Facebook etc, basically the Zuckerberg empire), you might better understand it as a halfway point between the internet and the physical, offline world.

Still, in its infancy, the metaverse is predicted to allow people to be able to fully replicate their lives online, through the use of VR tech.

As the metaverse develops and embraces its potential, new deeper virtual experiences will become available to users. Everything from attending virtual classrooms and shops, to digital construction and real estate, is set to be the norm in this digital landscape.

The metaverse space presents huge opportunities for organisations and their CFOs.

Metaverse and finance, what does it mean for CFOs?

For CFOs looking to embrace the shift to the metaverse, there are a number of important factors to be aware of. One of the biggest, however, has to be cryptocurrency Including blockchain and NFTs). As a CFO, the metaverse and cryptocurrency present areas of huge potential upsides, but also huge potential risks to be mitigated.

The metaverse will in time have a virtual economy, enabled by digital currencies and the blockchain. It will be up to CFOs to understand these emerging technologies and how they can be integrated with an organisation’s processes. Currently, these novel payment systems are extremely volatile but this hasn't prevented some of the world's biggest companies and governments from investing in the technology.

And, that’s only the beginning. Understanding virtual currency is the first step, but forecasting these and creating solid plans around your business’s growth is a whole other thing entirely. You’ll have to start considering the benefits and risks of virtual assets, such as land and real estate - as well as the technology costs to keep your team confident in the metaverse.

To sum up

The metaverse and other related technologies, such as cryptocurrencies, blockchains and non fungible tokens, are supporting a fundamental shift in the roles and responsibilities of CFOs.

This chance will require CFOs to embrace these technologies and think about how your business will develop in order to operate in the virtual world.

This change will not be straightforward! As well as the risk management that comes with incorporating these technologies, there’s also huge cultural and accessibility barriers to overcome, not to mention the environmental impact that comes with the computing power needed to maintain these virtual environments. One thing is for sure, the metaverse isn’t going anywhere, and although currently unclear, the future for CFOs, the metaverse and finance is certainly exciting.

Hi, we’re Accountancy Cloud

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Through our motivated and personalised service, we can help you achieve all of your business goals. Talk to us today to see how we can help you.