An ex-CEO of Citigroup claimed that all major banks and securities firms will soon be open to crypto trading. He is also hopeful that digital currencies will soon be accepted by all central banks.
Ex-CEO of Citi expects all major banks to embrace crypto within 1-3 years
Vikram Pandit, an Indian-American banker, spoke at the Singapore Fintech Festival last week about the future of cryptocurrency and central bank digital currency (CBDCs).
Pandit was appointed CEO of Citigroup on December 7, 2007. He also led Citigroup’s financial crisis recovery. Prior to Citi, he joined Morgan Stanley in 1983 and ultimately became president and chief operating officer of the company’s institutional securities and investment banking businesses. Orogen is an investment firm he founded with his wife, and he serves as its chairman.
At the fintech conference, he explained that most major financial institutions would soon consider trading or offering services in cryptocurrency.
[In] one to three years, every large bank and, or securities firm is going to actively think about ‘Shouldn’t I also be trading and selling cryptocurrency assets?’
A growing number of major banks are getting involved in crypto, including Australia’s Commonwealth Bank, Thailand’s Siam Commercial Bank, US Bank, and Singapore’s DBS.
Major investment banks, such as JPMorgan and Morgan Stanley, have begun to offer crypto investments for their clients.
Several crypto-related projects are also being pursued by major payment companies, such as Visa, Mastercard, or Paypal.
Regarding central bank digital currencies (CBDCs), Pandit said that moving money around the world while trying to modernize a paper-based banking system is “cumbersome” and creates a lot of “deadweight” costs, Bloomberg reported.
He envisions, “a central bank digital currency, which is available to you and me, and every other retail participant around the world,” elaborating:
I hope that all central banks understand the benefits of central bank digital currencies and will accept them.
An increasing number of central bankers around the world are considering launching their CBDCs. According to the Atlantic Council’s CBDC tracker, 87 countries are now exploring a CBDC. Seven of them have launched. 17 pilots are underway, 15 are under development, 39 are still being research.
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