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WEF Report Warns Against Crypto “Asset Bubble”, Calls Metaverse a Threat to Privacy

The central focus of the World Economic Forum’s (WEF) annual Global Risks Report was on the bursting of “asset bubbles,” as it declared it one of the biggest problems facing the world as a “polycrisis” looms.  

The report included results from the 2022 Executive Opinion Survey (EOS), in which 12,000 respondents were asked to rank a list of 35 risks that they see as the “biggest threat” to their country in the next few years.

The participants from 121 countries ranked the “asset bubble burst”, which includes cryptos, stocks, energy, and housing in the top 5 risks of 35. It was noted that surveyors from China, South Korea, Canada, and the United Kingdom were especially concerned. 

Other risks highlighted by the WEF report include “stubborn inflationary pressures over the next two years,” liquidity shocks, and stagflation that could coincide with “historically high levels of public debt.”

Related: Crypto’s Longevity Depends on Regulation, According To Coinbase Exec

The Metaverse and Privacy Paradox

In one of the reports chapters, the authors warn that the metaverse is a detriment to user privacy. The report argues that as data collection technology develops, private and public sectors may target and monitor individuals at an unprecedented scale.

The report stated that “enhanced by the metaverse, both sectors could collect and track even more sensitive data, including facial expressions, gait, vital signs, brainwave patterns and vocal inflections,”

The WEF Changes Tune on Crypto

While the Global Risks Report is wary of crypto and the metaverse, the World Economic Forum hasn’t always been so un-optimistic about the technology powering them. In 2020, the WEF advocated for a  “blockchain bill of rights,” which outlined how decentralized technology should be built and maintained  based on its Presidio Principles. 

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