The US Consumer Financial Protection Bureau (CFPB) has issued a warning about potential financial risks associated with video games and virtual worlds, especially those involving cryptocurrencies.
In a report titled “Banking in Video Games and Virtual Worlds,” the CFPB highlighted the growing interest of game makers in bringing virtual elements into the real world. While cryptoassets currently represent a small portion of the virtual gaming world, the report suggests this may change.
The CFPB's report, released Thursday, focused primarily on virtual gaming in general. However, it has also drawn attention to cryptoasset virtual worlds, which, although less popular than mainstream virtual gaming worlds such as Roblox, Second Life or Fortnite, are becoming increasingly important due to the prevalence of third-party cryptoasset trading platforms.
According to the report, these platforms allow users to convert the native crypto assets of the virtual world into fiat currency, making them more porous than typical gaming markets. The report noted that some of the largest virtual gaming world publishers are showing increasing interest in positioning their virtual items as crypto assets that can be traded outside the game's economy.
The institution added that crypto assets in worlds such as Decentraland and The Sandbox can be bought and sold on other crypto platforms for dollars.
*This is not investment advice.