The founder of the cryptocurrency exchange FTX, Sam Bankman-Fried, is optimistic that the clarity provided by regulators around the world will spur institutional adoption rates for cryptocurrencies this year and beyond.
In a Jan.3 interview with Bloomberg, SBF discussed crypto regulations, institutional adoption, and the Metaverse. Even though the end of 2021 for the markets has been rocky, SBF is “bullish” on 2022.
“The things that make me optimistic are basically more regulatory clarity in the United States and globally, which I think could help a lot in institutional adoption.”
When Asked how he thought institutional adoption of cryptocurrencies might accelerate in the future, he replied, “A lot of it depends on what exactly happens on the regulatory front as well.”
His view on regulatory clarity fostering further institutional growth in cryptocurrencies echoes the views of Nansen’s Beili Baraki and Metrika’s Nikos Andrikogiannopoulos, as reported by Cointelegraph on January 3.
It offered the possibility that If jurisdictions “feel they are getting regulatory clarity,” that adoption could come in a “wave.”. However, more than the scene of the tide, “it is going to be a long process, which will probably take a few years, “he added.
In addition, he noted that “many different governments announced that there will be regulatory frameworks throughout the next year.” Various governments have been working hard to establish the appropriate regulatory frameworks for cryptocurrencies.
Another source of optimism from SBF seems to come from the vigor with which institutions are beginning to flood the cryptocurrency ecosystem.. He said:
“Basically all the big financial institutions I have talked to, all the big banks, all the big investment banks, the pension funds, they all have this sector in their sights.”
When asked what a combination of cryptocurrencies and the metaverse would look like, the crypto millionaire noted that With the billions of players around the world, non-fungible tokens (NFTs) in video games will likely be one of the biggest roles cryptocurrencies play in the metaverse.
There were about 3.2 billion gamers in the world in 2021, according to Statista. However, the crypto gaming industry comprises only 1.2 million players, according to DappRadar. This suggests that The integration of cryptocurrencies with mainstream games would provide a tremendous boost to the global adoption of cryptocurrencies, reconfirming SBF’s prediction.