Coin Bureau, a youtube channel that talks about everything related to cryptocurrency, released a video on 3 October about how Chainlink’s (LINK) recent partnership with SWIFT ties everything together.
Previously, on 29 September Chainlink announced that SWIFT will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in a proof-of-concept demonstration.
Chainlink describes the project as an effort to make the SWIFT network interoperable with different blockchain systems.
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
“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,” Tweeted Chainlink.
The Real Meaning Behind The Partnership
Guy, the host of Coin Bureau on YouTube, explains what the partnership with the payments institution 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,” said him.
“ 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,” added him.
However, during a crypto bear market, this kind of speculation is nowhere to be found, according to the host. He gave the example of LINK still crashing despite this significant news.
He said, ”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.”
The Partnership is Carried Out to Try to Keep Up with The Times, The Host Says
According to Guy, the partnership may suggest that SWIFT wants to get ahead in the blockchain space before it becomes mainstream,
“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,” he said.
He added, “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.”