Oculus Quest (standalone VR headset) has released hand tracking as a beta feature. It works surprisingly well but there needs to be a lot of work on designing proper UX for this type of input. For example, pressing a button in VR or on screen is hard to do if your hands are in the air, Oculus so far is using something they call "passive haptics" which is in fact instead of pressing a button in real life, you tap one of your fingers on part of your body/hand. For example to "click" you tap your thumb and your finger.

The technology is there.