Citibank believes that cryptocurrency will become a new instrument for storing and exchanging assets and will change the structure of the financial market.
The banking group published
report, which offers a plan for organizations considering the introduction of digital payments. “Cryptocurrencies have gone from being an obscure novelty to an industry with a $ 2 trillion market cap. This is shaping new thinking in general in several directions: payments, savings, accounting, ”write the authors of the report.
“In this document, we focus exclusively on cryptocurrencies such as bitcoin, intangible digital assets that are not used as the primary medium of exchange today. But this, in theory, could change in the future. ”
“Often, the stablecoins and digital currencies of the Central Bank are called by a generic term“ cryptocurrencies ”. We do not cover them or other types of currencies in this report. We focus on the definition of currencies described above and use the abbreviation “crypto”, ”wrote William Artingstall, Chief Development Officer, in the introduction to the report.
Last year, 8 banks, including Citibank, launched a trade finance platform on the Сontour blockchain. Thus, showing their interest in mastering the new financial reality. The main goal of the platform was to accelerate trade finance processes through digitization using blockchain.
City believes there are a number of steps that need to be taken to embed digital assets in companies. The bank recommends using a direct model of obtaining currency and the concept of a third-party guarantor, while notes that this requires in-depth knowledge of accounting. For organizations, the report describes a three-point approach to using currencies. First you need to make sure that the accounting department has all the necessary tools to work and choose which cryptocurrencies will be used by the company. Organizations need to understand whether they will keep the received currency on the balance sheet.
Citibank is one of the leading financial institutions that actively follows the development of the cryptocurrency market. Due to numerous customer requests, the bank is considering creating services to support digital assets. The bank demonstrates by its example the importance of research and use of cryptocurrencies for business.
In April 2021, Citigroup partnered with IDB Bank to test cross-border payments between the US and Latin America. For this, the LACChain blockchain based on EOSIO was used, and in August 2021, a division for working with digital assets was created.
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