• According to a former Citi CEO, every large bank will actively consider cryptocurrency within the next 1-3 years

  • According to a former Citigroup CEO, every major bank and securities firm will consider crypto trading or services within the next one to three years. He also hopes that central banks around the world will embrace digital currencies.

    Former Citi CEO predicts that all major banks will embrace cryptocurrency within the next 1-3 years.

    Vikram Pandit, an Indian-American banker and former CEO of Citigroup, spoke about the future of cryptocurrency and central bank digital currencies (CBDCs) at the Singapore Fintech Festival last week.

    Pandit took over as CEO of Citigroup in December 2007 and led the American bank through the financial crisis. Prior to joining Citi, he worked at Morgan Stanley, where he rose through the ranks to become president and chief operating officer of the company’s institutional securities and investment banking divisions. In 2016, he co-founded the investment firm Orogen, where he currently serves as chairman and CEO.

    At the fintech conference, he stated that all major financial institutions will soon consider trading or providing services in cryptocurrencies, stating:

    [Within] one to three years, every large bank and/or securities firm will actively consider the question, “Shouldn’t I also be trading and selling cryptocurrency assets?”

    A growing number of major banks, including Australia’s Commonwealth Bank, Thailand’s Siam Commercial Bank, US Bank, and Singapore’s DBS, are investing in cryptocurrency.

    JPMorgan, Morgan Stanley, and Goldman Sachs are among the major investment banks that have begun to offer crypto investments to their clients.

    Furthermore, payment giants such as Visa, Mastercard, and Paypal are all working on crypto projects.

    Pandit stated in relation to central bank digital currencies (CBDCs) that moving money around the world while attempting to modernize a paper-based banking system is “cumbersome” and creates a lot of “deadweight” costs, according to Bloomberg.

    He envisions “a central bank digital currency that is available to you and me and every other retail participant around the world,” going on to explain:

    My main hope is that central banks around the world recognize the value of a central bank digital currency and begin to accept and adopt it.

    A growing number of central banks around the world are considering launching their own CBDCs. According to the Atlantic Council’s CBDC tracker, 87 countries are currently investigating the use of CBDC. Seven of them have already been launched, 17 are being piloted, 15 are in development, and 39 are being researched.

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