The creator of Chainlink foresees a possible collapse of the banking system that could accelerate the mass adoption of cryptocurrencies. Sergey Nazarov predicted two possible futures for cryptocurrencies and blockchain technology in the next decade. Cryptocurrencies, such as Bitcoin and Ethereum, as well as DeFi, have gained traction because they offer a decentralized alternative, according to Nazarov.
In a recent interview with Bankless, Sergey Nazarov, the creator of Chainlink (LINK) famous for its solution to the Oracle problem; laid out his vision about how the cryptocurrency industry could evolve over the next decade, and how a possible collapse of the traditional banking system could accelerate the mass adoption of cryptocurrencies.
Will there be a Bank Failure? Chainlink Creator Envisions Two Scenarios for Crypto Adoption
Nazarov identifies two possible scenarios for the future of cryptocurrencies and blockchain technology. The first of these is the “slow scenario”, in which industry and technology continue to grow at a constant pace, gradually detracting from the traditional financial system. This scenario would imply a smooth transition towards a new economic and financial paradigm.
However, the second scenario, called the “quick scenario”, presents a more dramatic situation. In this case, an accelerated collapse of the legacy banking system would lead millions of people to experience significant financial hardship, which in turn would force them to recognize the benefits of verifiable money and cryptocurrency systems.
According to Nazarov:
“The quick scenario implies more Silicon Valley Bank-type failures, Credit Suisse-type failures, more monumental failures that may not be able to be mitigated by government intervention and that could generate financial pain for society, political tensions and international problems, because the system promises are not adequately supported.”
For Nazarov, this scenario, added to the lack of support for the promises of the traditional financial system, would lead the population to realize the fragility of the systems in which their value and economic life reside. This, in turn, would make a cryptographically secured world and verifiable Web 3.0 extremely attractive.
Chainlink Creator: In the Future the Crypto Ecosystem Would Not Just Be Popular
Nazarov suggests that in a rapidly changing scenario, those who do not offer crypto guarantees in their economic relationships, or cannot verify how users relate to their assets in the system, will be at a disadvantage. It will be similar to not being on the internet, as cryptography will become an essential component of the economy.
Even in the “slow scenario,” Nazarov maintains that the cryptocurrency industry is likely on track toward a $10 trillion market capitalization, a path that began when it surpassed the $200 billion mark.
Sergey Nazarov therefore anticipates two possible futures for cryptocurrencies and blockchain technology in the next decade. One is a gradual path to mass adoption, while the other is a faster and more dramatic scenario involving the collapse of the traditional banking system and the consequent search for refuge in crypto money systems and a verifiable web.
In any case, it seems that cryptocurrencies will continue to be a relevant topic in the evolution of the global financial landscape.
If central banks and CBDCs fail to adequately address the underlying issues of trust and transparency, there could be more people seeking refuge in cryptocurrencies that offer crypto collateral and greater resistance to censorship.
By Audy Castaneda
