Anyways another crypto project that’s been making the headlines lately is Chain Link which recently partnered with Swift.
For context Swift is a messaging system used by over 11 000 banks around the world, this means that Swift is basically the backbone of the existing Financial system.
Chain Link’s partnership with Swift will see the pair develop a proof of concept protocol that will make it possible to send messages between cryptocurrency blockchains and the existing Financial system.
In other words it’ll make it possible for cryptocurrency to interact with the existing Financial system.
The caveat is that the existing Financial system isn’t all that fast, it takes days to settle transactions on Swift and that means the proof of concept protocol wouldn’t do all that much to improve the existing Financial system if it becomes adopted.
The bigger question is whether this protocol would increase the demand for link if it does get adopted and the answer seems to be no.
That’s simply because link is used to pay chain link Oracle providers for their services, these Oracle providers then turn around and sell their link for Fiat even so that doesn’t mean that there couldn’t be a speculative pump associated with Swift’s chain link integration.
If it comes to pass, the only problem is that this speculation is nowhere to be found during a crypto bear Market.
Case in point link continued to crash despite this significant news.
Now another problem is that Chain Link’s Swift partnership may not actually be all that significant, that’s because the consensus in cryptocurrency and elsewhere is that these proprietary interbank messaging systems are on their way out.
Swift’s partnership with Chain Link may be evidence to that effect.
To my mind the only reason why Swift would partner with a crypto project is because it’s trying to keep up with the times.
It’s not all that different from all these publicly listed companies adopting NFTs when they know deep down.
That decentralized Alternatives will replace their intermediated business models.
Still this doesn’t take away from the fact that Chain Link is building cutting-edge Tech that’s attracting the attention of seriously significant institutions.
My only hope is that this somehow manages to reflect in Link’s price especially since much of Chain Link’s operations seem to be financed by its selling of Link.