Sam Bankman- Fried is a man.
FTX; Marianne Ayala/Insider.
Sam Bankman-Fried, the boss of FTX, said that Cryptocurrencies can expect to see more institutional adoption in 2022, but it will depend on the regulatory front.
Regulatory clarity will allow some large investment banks and pension funds to enter the industry this year, according to the CEO of the exchange.
The pace of adoption by financial institutions will be dictated by developments in digital asset regulation.
"Especially if we feel like they're getting clarity, that could come in a tidal wave, it could come in a trickle," he said in an interview released Monday.
He doesn't think there will be a rapid inflow within the next six months as it takes time for institutions to onboard new platforms.
He said that the market could be "really enormous" and that it would be a long process.
"I've talked to every large bank, every large investment bank, pension funds, they're all eyeing the sector." Many of them have begun to break ground on their activities in it, but it's slow and takes time.
A growing number of financial institutions have begun to offer offerings related tocryptocurrencies. Digital assets should be part of a portfolio, no matter your age, according to some financial advisors.
The founder of FTX pointed to activity in the industry last year as the foundation for what is to come.
He thinks there will be a lot happening this year. What happened last year has already been seen. A lot of that has been done.
Some investors looked for a hedge against the high inflation seen around the world, and that's why cryptocurrencies gained in value. Retail demand in the market soared due to rising mainstream interest, with data showing global adoption of cryptocurrencies rose by more than 80%.
Cryptocurrencies have fallen back in recent weeks. Bankman-Fried was somewhat positive when asked if he sees a comeback of the virtual currency in the year 2022.
"I think that regulatory clarity in the US and globally could help institutional adoption, and that's one of the things that makes me optimistic," he said.
When developments in a regulatory framework for digital assets can be expected, the billionaire gave his take.
He said that the stablecoin sector could get some ground rules, and that the first batches of it would probably come out in 2022.
The metaverse, a virtual landscape in which people can interact, buy non-fungible token, or even date, has attracted high interest from Wall Street institutions. The metaverse could take a long time to become a full-blown technology.
"I expect that we might see a cooling off of some of the pure NFT activity that we've seen recently, unless and until we see large names of players and partners come into the space," he said. I expect that to happen, and that will be the next piece of Web3 growth.
A Wall Street veteran trader-turned cryptocurrencies expert breaks down how the two can potentially reach $80,000 and $7,500, and shares 6 major trends for the year ahead.
Business Insider has an original article.
