Citibank, one of the largest banks in the United States, is working on creating its own cryptocurrency called CitiCoin. It will function on the base o
Citibank, one of the largest banks in the United States, is working on creating its own cryptocurrency called CitiCoin. It will function on the base of the other digital currencies such as Bitcoin for example but obviously with this huge difference of being owned by a bank. This would mean that the system of cryptocurrency transactions will also change since it will become centralised and controlled by one main body. The new currency is still being tested and developed within the bank’s labs but the mere announcement of it brings about an interesting discussion about the future of the digital currencies.
As Kenneth Moore, the head of Citigroup Innovations Lab, claims, Citibank wants to keep up to date with the latest technologies in the business and of course, make use of their full potential. Thus, instead of losing from cryptocurrencies’ growing popularity, Citibank will try to become a part of the digital currency market. So far, numerous other banks are testing and exploring how to apply blockchain to their services. It seems that the blockchain technology is gradually being adopted by large financial institutions as a fast and efficient way of catering to the needs of both banks and their clients.
However, cryptocurrencies are still not reliable enough to make traditional electronic money redundant and that is why banks are not afraid of their competition. It is a well-known fact that cryptocurrency’s fluctuations are difficult to control and foresee. This is one of the main reasons why cryptocurrencies are still struggling to outgrow and replace the conventional money transactions. Nevertheless, digital currency’s popularity is still on the rise as there are more and more new cryptocurrencies joining the market.
In a matter of fact, Citibank is not the only bank working in the direction of introducing the cryptocurrency into the banking system. Currently, other major international banks are also joining efforts to develop their own digital money that will facilitate transactions especially between different countries and bank’s branches. These are good news also for people who do not have a bank account but want to be able to transfer money online. Even a non-account holder will have the opportunity to send and receive encrypted digital currency. The only prerequisite left will be having a smart phone.
The fullest advantage of the current technology trends is still undiscovered. It goes without saying that banks’ attitude towards cryptocurrencies is about to change as they appear to be determined to retain control over the online payments.