4 October 2023
In a recent interview, Chainlink’s co-founder, Sergey Nazarov, said the collapse of the banking industry will drive crypto mass adoption.
Chainlink’s Co-Founder Predicts Crypto And Blockchain Prospects Over The Next Decade
Sergey Nazarov believes that the collapse of the banking industry will favor crypto adoption and growth in the next decade.
Nazarov believes the crypto industry and its technological innovations might maintain the same slow growth pace. However, the industry player cited two possible crypto and blockchain adoption scenarios in the next ten years.
First, the Chainlink co-founder proposed a fast-case scenario where the collapse of the traditional finance system puts individuals in pain. This pain will force individuals to “acknowledge the relevance” of cryptographic financial systems.
Further, Nazarov noted that the continued collapse of banks like Silicon Valley Bank could fast-track crypto adoption.
Secondly, based on the first theory, the collapse of traditional finance systems will lead to political tension and international problems. Nazarov believes investors will favor crypto for financial operations if the pain of suffering losses becomes unbearable.
Therefore, Nazarov insists that even in the slow case, the crypto market is likely on its way to a $10 trillion market cap.
Chainlink’s Adoption By ANZ Banking Group Supports Nazarov’s Growth Theory
According to a new industry report, ANZ Bank has adopted Chainlink’s CCIP for cross-chain tokenized asset settlement. CCIP solution helps to transfer data and tokenized assets across blockchains in a decentralized and secure way, according to the crypto founder.
Notably, ANZ Bank is one of the world’s largest banks, with over $1 trillion in total assets managed. Sergey Nazarov noted that Chainlink’s adoption by ANZ shows how large companies are now adopting Chainlink’s CCIP.
Also, the co-founder stated that building on a global internet needs secure connectivity between private bank chains and public chains.
The CCIP is an upgrade on the Chainlink Network that functions as a global Internet of Contracts. This upgrade aims to create the world’s largest liquidity layer across various regions and markets.
Remarkably, Nazarov stated that CCIP can create a higher level of cross-chain security. It achieves this extra security with multiple layers of decentralization and advanced risk management techniques.
Moreover, most cryptocurrencies offer users fast and secure cross-border transactions cheaply. However, some critics still insist that cryptocurrencies are unreliable based on their volatility and crisis in the sector.
With innovations like the CCIP of Chainlink, more banks may integrate crypto and blockchain-based solutions. This drives crypto to mainstream adoption, increasing the market cap to $10 trillion, as Nazarov predicts.
Meanwhile, the collapse of banks such as Silicon Valley Bank (SVB) in 2023 has strained the global finance economy. If another banking crisis occurs, cryptocurrencies might become the preferred option for most investors based on their rising utility.