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The pseudonymous host of Coin Bureau is connecting the dots in Chainlink’s (LINK) recent partnership with the SWIFT payments network.
Five days ago, Chainlink announced SWIFT will utilize LINK’s Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.
According to Chainlink, the proof of concept project aims to make the SWIFT network become interoperable across different blockchains.
SWIFT is using the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.
CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.https://t.co/8GOBNhzwCk pic.twitter.com/Pvm0Cex45e
— Chainlink (@chainlink) September 28, 2022
Coin Bureau host Guy tells his 2.13 million YouTube subscribers what the partnership with the payments institution really means.
“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 Chainlink 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 Chainlink 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.
Another problem is that Chainlink’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 Chainlink may be evidence to that effect.”
Guy says that the partnership may hint that SWIFT is working with Chainlink in order to get ahead in the blockchain space before it becomes the standard.
“In 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 [non-fungible tokens] when they know, deep down, that decentralized alternatives will replace their intermediated business models.
Still, this doesn’t take away from the fact that Chainlink is building cutting-edge tech that’s attracting the attention of seriously significant institutions.”