Posted 11 months ago | by @devadmin
Citigroup Chief Executive Michael Corbat stated in a Bloomberg interview that Citi Bank is helping governments “around the world” in creating fiat Central Bank Digital Currencies (CBDCs.)
While speaking to David Rubenstein at a Bloomberg event, Corbat declared that CBDCs are “inevitable” for the future of money. Adding that, Citigroup, was in the process of helping governments worldwide bring that future to fruition. Although he didn’t expand on that and say what countries the large banking institution was working with, he did make it clear that Citi Bank was going to be helping the efforts.
“We’ve been working with governments around the world in terms of the creation and commercialization” of sovereign digital currencies, Corbat said.
Corbat further added that cryptocurrencies will have a function in society even in the era of CBDCs. Corbat didn’t mention Bitcoin
But he said that “some of these currencies will be continued alternatives, continued different sources of payment that people can take advantage of based on the underlying nature of what they are.”
Citi Bank isn’t the only bank discussing Central Bank Digital Currencies. Earlier this year, Wells Fargo announced its interest in digital currencies with a report entitled: “Let’s Get Digital: A Briefing on Central Bank Digital Currencies.”
Last year, Wells Fargo announced that it would pilot its own digital currency powered by blockchain to help move cash across borders and between branches in real-time.
In 2016, more than 100 executives from some of the world’s largest financial institutions including Nasdaq, Citigroup Inc., Visa Inc., Fidelity, Fiserv Inc., Pfizer Inc. and others, gathered for a private meeting at the Times Square office at the Nasdaq. It was during this meeting that the executives tested digital cash and settlements. Four years later, about on track with the amount of time it takes to observe new innovations and develop technology, we are seeing many of these major companies jumping into blockchain and cryptocurrency.
Speaking of VISA, the payment company recently partnered with an Ethereum-based stablecoin project USDC to integrate the digital asset for payment for its more than 60 million-plus merchants as Bitboy Crypto reported. Similarly Mastercard its competitor has also discussed Central Bank Digital Currencies, with its CEO Ajay Banga; stating that he was bullish on CBDC technology.
More recently eight central banks prepared a report on CBDCs including — Canada, the U.K., Japan, Sweden, Switzerland, the U.S. Federal Reserve, the European Central Bank, and lastly the Bank for International Settlements (BIS).
The joint report stated “foundational principles and core features” for central bank digital currencies (CBDCs) and how they should be designed. These three principles are as follows. First, a CBDC should work adjacent with cash and other current payment types “in a flexible and innovative payment system.” Second, a CBDC should support “wider policy objectives” and “do no harm” to monetary and financial stability. Third, a CBDC should “promote” innovation and performance.
Bitcoin is currently trading at [FIAT: $18,739.92] DOWN -3.6% in the last 24 hours according to Coingecko at the time of this report.