SWIFT Is Integrating Blockchain Technology with Chainlink

Chainlink (LINK) is what is known in the crypto world as an oracle. 

These exist to facilitate the transfer of off-chain data to on-chain smart contracts. Built on the Ethereum network, Chainlink is the largest oracle network currently in existence. And it has caught the eye of the preeminent global payments service, SWIFT.
They are currently working with Chainlink to create a cross-chain interoperability protocol (CCIP). This would allow SWIFT to communicate directly with blockchains to enable token transfers. 

SWIFT Is Integrating Blockchain Technology with Chainlink.
Currently, blockchains cannot communicate directly with each other. An app on Ethereum can’t talk with one on Solana or Polkadot for instance. 

Cross-chain bridges have been built to allow communication between networks but they are vulnerable to hacking. In fact, it has been estimated that $2 billion in cryptocurrency has been stolen from these bridges just this year. That is partly why this project is so significant. 
When this technology is complete, it will be a massive boon for distributed ledger and blockchain technology. 
Mass adoption of crypto is only a matter of time.
SWIFT’s Strategy Director, Jonathan Ehrenfeld Solé, claims that the reason they’re working with Chainlink on building this protocol is that there is “undeniable interest” in crypto from institutional investors. Once SWIFT manages to implement this service, big movers in traditional finance (TradFi) will be able to access all sorts of digital assets on one network. 
This has the potential to merge traditional finance with decentralized finance. 
SWIFT is the most popular platform for cross-border fiat transactions, and they are connected to over 11,000 banks worldwide. They average 44.8 million messages per day. But it’s not fast. In fact, transactions often take several days to complete. This is becoming unacceptable in an increasingly fast-paced digital world.
That’s why integrating blockchain technology is so exciting. It has the potential to reduce these transfer times down to almost nothing. 
Central bank digital currencies (CBDCs) are also being explored. Although I've written about the potential dangers of CBDCs in the past, there’s no stopping them. Eleven countries have already launched their own with many more to follow, including the U.S. and Europe. 
SWIFT is researching how to implement them to carry out fast cross-border payments and settlements. 

In fact, the CEO of Mastercard, Michael Miebach, has stated that he thinks CBDCs will completely replace SWIFT within 5 years. While I think this is unlikely, it’s clear that CBDCs will be a central part of the global economy by then.
I also think that SWIFT realizes that if they don’t innovate, they risk certain death in the future. They’re also savvy enough to recognize the increasingly valuable role blockchain and distributed ledger technology will play in the future of finance. 
Chainlink’s co-founder, Sergey Nazarov, recently spoke at the SmartCon conference in New York City where he emphasized the importance of this partnership in boosting the adoption of distributed ledger technology blockchains. He also highlighted the fact that many institutions across the capital markets will benefit as well.

In Crypto Cycle, I’ll be keeping a close eye on this development as well as others in the space, and making specific buy and sell recommendations on the coins and tokens that will benefit the most.

Chris Curl

Chris Curl
Editor, Daily Profit Cycle