Citi: Bitcoin Won’t Disrupt Banks, Remittances or Card Networks
A new research report by banking giant Citi asserts that it does not view bitcoin and other digital currencies as a disruptive threat to banks, credit card networks or traditional remittance providers. Published today, the 56-page report argues bitcoin and digital currencies are better equipped to open up new markets and reach new consumers, and that today’s centralized payment systems are already efficient enough for commerce in the developed world. Citi further indicated that it sees the broader movement toward faster payments solutions in the US, though initiatives such as the Fed....
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Citi Research released a 56-page report on bitcoin saying that it is not going to disrupt banks or credit card networks. It says there will be increased transaction costs for bitcoin to provide increased volume. As for the use of bitcoin in remittance payments, it says bitcoin’s advantage dissipates when the “last mile” cost of converting to fiat currency is considered. The report notes the growth of bitcoin mobile apps in developing countries but sees regulations rising that put them in question. It claims existing payment systems are generally efficient. The report also talks about....
A recent report published by Citi suggests that bitcoin could challenge or even supplant some traditional payment services if adoption widens in future years. According to Citi GPS, a corporate publication owned by the financial institution, the technology underlying digital currencies has the potential to disrupt current-day payments structures. It cites debit/credit card systems and remittance services in particular, saying: "The essential innovation in bitcoin is that it can eliminate the need for a 'trusted intermediary' when the principals in a transaction do not trust each other.....
Citigroup, Inc., better known as just ‘Citi,’ is the 3rd largest US bank by assets, and the 13th largest in the world. Founded in 1812 and headquartered in Manhattan, Citi was one of the primary dealers of US Treasury securities up until the 2008 financial crisis. The recession took a heavy toll on the bank, requiring a bailout from the US government to....
Nigerian crypto startup Yellow Card says it processed over $165 million in volume during the first eleven months of this year. The figure represents a growth of more than 1,840% over the amount of remittances processed in the last six months of 2019. Launched in June 2019, Yellow Card enables Africans at home and abroad to buy and sell cryptocurrency using their local currency via bank transfer, cash, and mobile money. The service is being used mainly for remittances, a multi-billion-dollar industry in Africa. Yellow Card co-founder and chief executive officer Chris Maurice told....
U.S. financial services firm Citi considers offering Bitcoin services following a flood of interest from its clients. The firm is one of many banks that has warmed to cryptocurrency in recent times. Although Citi has only signaled an interest at this time, a new custody initiative backed by Fidelity could soon see hundreds of U.S. […]