Monaco Entrepreneur Fuels Malta’s Innovation Growth

Exclusive interview with Wayne Grixti, the CEO of Tech.mt, a Public-Private Partnership between the Government of Malta and the Chamber of Commerce, Enterprise and Industry. The Foundation was established to promote Malta as a tech hub, support local businesses and startups to internationalise, and create initiatives to increase the local tech resources on the island.

With a vision to elevate Malta’s standing in the global technology sector, Tech.mt is committed to positioning the country as a hub of creativity and excellence. Its mission is to attract foreign direct investment while showcasing and promoting the local tech sector on an international scale.

Wayne Grixti serves as the Chief Executive Officer of Tech.mt and Chairman of the Malta Digital Innovation Authority (MDIA). Previously, he held the role of Chief Technology Officer at Air Malta and the MDIA, and he also chaired the Malta AI Taskforce. 

His goal today is to attract innovative projects, entrepreneurs, investors and startups to establish Malta as their home for digital innovation and growth.

What motivated the government of Malta to launch the Virtual Economy project in the Metaverse?

“The journey began with the vision of developing Malta’s digital twin, a virtual representation of the island. Malta has consistently been at the forefront  in adopting emerging technologies, as evidenced by its early embrace of blockchain and distributed ledger technologies. 

This leadership is further demonstrated by the creation of the world’s first comprehensive regulatory framework for virtual financial assets, established under the VFA Act and the Malta Digital Innovation Authority (MDIA) Act. Organisations like the Tech.mt (www.tech.mt) and the MDIA (www.mdia.gov.mt) have played a crucial role in promoting and regulating innovation in digital technologies, reinforcing Malta’s position as a leader in this field.

The “Virtual Economy project” in the Metaverse aligns with the island’s broader strategy to future-proof the economy and ensure its competitiveness on the global stage. We will continue to build on the successes to explore new frontiers in tech and economic development. The primary motivation was to create new economic opportunities by leveraging the Metaverse’s potential to drive innovation, enhance international engagement, and diversify the economy.”

This vision was further reinforced during a meeting in 2022 between Manila Di Giovanni, founder of DWorld, and Malta’s Minister for the Economy. Their shared perspectives highlighted how the Metaverse could align with Malta’s economic strategy by opening doors to untapped opportunities.

In 2024, this collaboration took a significant step forward with the signing of an MoU between Tech.mt and DWorld Malta, further formalising our shared vision for innovation and growth.

Can you describe the key objectives of Malta’s Virtual Economy initiative within the Metaverse?

“The objectives are multi-faceted. First, it aims to position Malta as a hub for innovation in virtual spaces by fostering a vibrant ecosystem where businesses, developers, and creators can thrive. This will be achieved through strategic partnerships, funding opportunities for startups, and the establishment of a regulatory framework that promotes innovation while ensuring security and transparency. 

Additionally, dedicated training programmes, through a collaboration between DiHubMT (Malta European Digital Innovation Hub) (https://dihubmt.eu) and DWorld Malta, will be developed to equip local talent with the skills needed to excel in virtual economies.

Focusing on blending Malta’s rich cultural heritage with cutting-edge technology, the initiative begins by recreating iconic locations like Valletta in the Metaverse. Valletta, a UNESCO World Heritage site, boasts a history that spans centuries and is home to architectural wonders like St. John’s Co-Cathedral and the Grandmaster’s Palace.

As the European Capital of Culture in 2018, Valletta has already established itself as a symbol of cultural and historical significance. The Metaverse project aims to honour this legacy while introducing a digital dimension that allows people worldwide to explore its beauty and history in immersive ways.

The initiative aims to attract foreign investment, help local businesses expand into global markets, and cultivate a dynamic virtual economy that creates new job opportunities, services, and industries.

Ultimately, the goal is to ensure that the Metaverse serves as a bridge to global opportunities while boosting Malta’s digital economy.”

How do you envision the Metaverse transforming Malta’s economic landscape over the next 5 to 10 years? How do you foresee the Virtual Economy project helping to diversify and expand Malta’s economy?

“Over the next 5 to 10 years, we anticipate the Metaverse becoming one of the core pillars of Malta’s digital economy. By fostering innovation in sectors like virtual real estate, digital content creation, and immersive experiences, the Virtual Economy will create new revenue streams for businesses and opportunities for local talent. 

For example, Malta’s growing gaming and creative industries could see significant growth as they adopt immersive technologies, while virtual real estate platforms may emerge as valuable tools for promoting sites.

The project will also diversify Malta’s economy by attracting investment from global tech companies and creating new industries focused on virtual assets, gaming, education, tourism, and entertainment. Additionally, it will offer small and medium-sized enterprises (SMEs) access to global audiences and marketplaces, allowing them to scale beyond traditional boundaries.”

What role does innovation and technology play in Malta’s broader economic strategy, and how does the Virtual Economy project fit into this vision?

“Innovation and technology are central to Malta’s economic strategy, as will be reflected in the Malta Vision 2050. 

This long-term strategy sets the country’s direction for the next 25 years, focusing on improving quality of life, promoting sustainability, and addressing complex challenges like climate change, technological disruption, and demographic shifts. 

The country is committed to building a knowledge-based economy driven by digital transformation, sustainability, and inclusive growth. 

The Virtual Economy project directly supports this vision by introducing cutting-edge technologies like blockchain, augmented reality, and artificial intelligence (AI) into the economic framework. AI plays a significant role, with Malta’s National AI Strategy and Vision focusing on creating an innovative and ethical environment for AI development and deployment. This aligns with the broader goals of the Virtual Economy by promoting smarter systems and solutions in virtual spaces. 

For example, initiatives such as DiHubMT and partnerships with leading tech companies have been pivotal in advancing Malta’s capabilities in these areas, positioning the country as a leader in integrating innovative solutions into its economic strategies.”

What do you see as the potential long-term benefits of Malta’s Virtual Economy for both local businesses and international companies?

“For local businesses, the Virtual Economy offers a platform to innovate and reach global audiences, unlocking new revenue streams and opportunities for growth. It also provides a competitive edge by allowing them to operate in cutting-edge digital environments. 

For international companies, Malta’s Virtual Economy serves as an attractive base to explore and develop new virtual markets, benefiting from the country’s supportive regulatory framework and vibrant tech ecosystem. 

Long-term, the project will boost Malta’s global reputation as a leader in digital innovation and create a sustainable ecosystem for businesses of all sizes.”

What are the main legal considerations when it comes to property rights, virtual goods, and services in Malta’s Virtual Economy?

“In my opinion the legal framework should focus on providing clarity and security for all stakeholders. Cybersecurity is a top priority, ensuring that virtual environments, transactions, and user data are protected against potential threats. This includes implementing advanced security protocols and compliance with international standards to safeguard the ecosystem. 

Key considerations may include defining ownership rights for virtual assets, establishing transparent rules for the trade of virtual goods and services, and ensuring consumer protection. Intellectual property rights are also crucial, as creators need safeguards to protect their work in the virtual space.”

Is Malta developing any specific laws or regulations for virtual assets, digital currencies, or NFTs (non-fungible tokens) to operate within the Virtual Economy?

“Yes, Malta’s regulatory framework for virtual assets and NFTs is rooted in its Virtual Financial Assets Act and detailed guidelines issued by the Malta Financial Services Authority (MFSA). 

Building on this foundation, the MFSA incorporates feedback from key stakeholders and aligns with European Union initiatives such as the Markets in Crypto-Assets (MiCA) Regulation to ensure a harmonised approach.

These efforts aim to strengthen the regulatory framework, making it more robust and adaptive to the evolving needs of the Virtual Economy. The goal was always to create a clear and secure legal framework that encourages innovation while protecting users and investors.”

What role do blockchain and decentralised technologies play in Malta’s Virtual Economy project?

“Blockchain and decentralised technologies are at the heart of Malta’s Virtual Economy. They provide the infrastructure for secure and transparent transactions, the creation and ownership of digital assets, and the development of decentralised applications within the Metaverse. 

These technologies also enable secure and decentralised systems, ensuring that users and businesses can interact with confidence. By leveraging blockchain, Malta is creating an environment where innovation thrives and users have full control over their digital identities and assets.”

What technological infrastructure does Malta have in place to support the Virtual Economy, and are there any key partnerships with tech companies involved? What impact do you expect the Metaverse to have on employment in Malta, both in terms of new job creation and existing sectors being transformed?

“Malta has invested heavily in its digital infrastructure, including high-speed connectivity, data centres, and cloud services. A recent milestone is the launch of DiHubMT, a facility designed to provide resources and collaboration spaces for innovators and startups. DiHubMT will also host a High-Performance Computer (HPC), enabling advanced computing capabilities to support complex simulations, data analysis, and AI-driven projects.

Partnerships with global tech giants have been instrumental in enhancing the island’s cloud and data storage capabilities, ensuring seamless scalability for virtual applications. 

Recent upgrades to 5G networks and investments in AI-driven cybersecurity solutions further demonstrate Malta’s commitment to building a robust foundation for the Virtual Economy. Cybersecurity measures are integrated into all facets of the infrastructure, ensuring that businesses and users can operate in a secure and resilient digital environment.

The Metaverse is expected to drive significant job creation in areas such as software development, digital content creation, virtual design, and cybersecurity. Additionally, traditional sectors like tourism, education, and healthcare will be transformed, creating new opportunities and enhancing efficiency.”

How is the Government of Malta working with tech companies to foster the development of virtual spaces within the Metaverse?

“The Government is actively collaborating with tech companies through various initiatives, such as the MoU between Tech.mt and DWorld. Such partnerships aim to foster innovation by providing the necessary resources, incentives, and regulatory support.”

The Government also engages with industry leaders to identify challenges and opportunities, ensuring that Malta remains at the forefront of innovation. 

By fostering a collaborative ecosystem, Wayne Grixti and his expert team are on the right track to build a strong foundation for the future of virtual spaces within the Metaverse and ensure that Malta’s Virtual Economy thrives. It is an amazing achievement that a Monaco based company can also be part of this exemplary journey.