FTX founder Sam Bankman-Fried is optimistic that clarity provided by regulators around the world will stimulate institutional adoption rates for crypto this and subsequent years.
In a Monday interview with Bloomberg, SBF talked about crypto regulations, institutional adoption and the Metaverse. Despite the rocky end to 2021 for markets, SBF is “optimistic” about 2022:
“The things that make me optimistic basically are more regulatory clarity in the U.S. and globally, which I think could help a ton, and institutional adoption.”
When asked how he thought the institutional adoption of crypto could accelerate in the future, he responded, “A lot of it depends on exactly what happens on the regulatory front, as well.”
His view on regulatory clarity encouraging more institutional growth in crypto echoes the views of Beili Baraki of Nansen and Nikos Andrikogiannopoulos of Metrika, as reported by Cointelegraph on Monday.
He offered the possibility that if jurisdictions “feel like they’re getting [regulatory] clarity,” that adoption could come in a “tidal wave.” However, rather than the tidal wave scenario, more likely “It’s going to be a long process, probably stretched out over a few years,” he added.
Additionally, he noted that “We've seen a lot of different governments announce that there will be regulatory frameworks coming out over the next year.” Several governments have been hard at work sorting out their appropriate regulatory frameworks for cryptocurrency.
Another source of SBF’s optimism seemed to come from the vigor with which institutions are starting to flood into the crypto ecosystem. He said:
“Basically, every large financial institution I've talked to — every large bank, every large investment bank, pension funds — they're all eyeing this sector.”
When asked what a combination of cryptocurrency and the metaverse would look like, the crypto billionaire pointed out that with the billions of gamers worldwide, nonfungible tokens (NFTs) in video games will likely be one of the largest roles that crypto plays in the metaverse.
There were about 3.2 billion gamers in the world in 2021, according to Statista. However, the crypto gaming industry comprises just 1.2 million gamers, according to DappRadar. This suggests that the integration of cryptocurrency with mainstream gaming would provide a tremendous boost to global crypto adoption, reconfirming SBF's prediction.