Citi says the industry is finally “approaching an inflection point” and that blockchain technology will soon see “billions of users and trillions of dollars in value.” In its latest report “Money, Tokens, and Games: Blockchain’s Next Billion Users and Trillions in Value,” Citi analysts suggest that the next influx of crypto adoption will be powered primarily by the rise of central bank digital currencies (CBDCs) and the tokenization of real-world assets. CBDCs are alternatives to cryptocurrencies like Bitcoin or Ethereum. Based on current trials, CBDCs would be pegged to a fiat currency, be it the dollar or the pound, but exist digitally and be controlled by the issuing currency’s central bank, such as the Fed or the Central Bank of England. During a panel event today during the Citi Digital Money Symposium, which coincided with the report’s release, the bank’s future of finance lead Ronit Ghose suggested that there will be $5 trillion circulating in the economy in CBDCs “by the end of this decade.” Still, he did add the caveat that “most of it will not be blockchain-based, but some of it will have blockchain interoperability or be DLT-specific.” DLT refers to distributed ledger technology, which does not necessarily include using a blockchain.
Full report : Citi Says Mass Adoption of Crypto Will Be Driven by CBDCs, Tokenization.
