Sam Bankman-Fried, founder of FTX Crypto Exchange, is hopeful that institutional adoption rates will rise for crypto in this and the next years due to the clarity provided by regulators worldwide.
SBF spoke with Bloomberg Jan. 3 about crypto regulations, institutional adoption and the Metaverse. SBF remains optimistic about 2022 despite the market’s rocky ending in 2021.
“The things that make my optimistic are more regulation clarity in the US and globally, which I believe could help a lot with institutional adoption.”
When asked how institutional adoption of cryptocurrency could increase, he replied, “A lot depends on exactly the regulatory front.”
Cointelegraph reported that his view on regulatory clarity promoting more institutional growth in crypto is similar to the views of Nikos Andrikogiannopoulos and Beili Baraki, both of Nansen.
He suggested that jurisdictions could feel like they are getting regulatory clarity. However, he said that it would be a lengthy process that will likely take several years.
He also noted that “a lot of different government announced that there would be regulatory frameworks over the next year.” Many governments have been working hard to create appropriate regulatory frameworks in order for cryptocurrency.
Similar: In three years, the number of countries that ban crypto has doubled
SBF’s optimism was also fueled by the enthusiasm with which institutions are flooding into the crypto ecosystem. He stated,
“Basically, every major financial institution I spoke to, every bank, every large investment banking, pension funds, they all have their eyes on this sector.”
The crypto billionaire was asked to describe a combination of crypto and the metaverse. He said that nonfungible tokens (NFT), which are used in video games, would likely play one of the biggest roles that crypto has in the metaverse.
According to Statista, there were 3.2 billion gamers worldwide in 2021. DappRadar reports that the crypto gaming market only has 1.2 million players. This confirms SBF’s prediction that global adoption of crypto would be boosted by the integration with mainstream gaming.