The financial services sector goes back and forth on bitcoin. Will it take off or be a monumental flop? Will it threaten the role of traditional banks? Will the cryptocurrency change everything we know about payments or silently fade into irrelevance?
Citi Bank has just offered its own take on the debate. In a U.S. Digital Banking report published last week, Citi’s Could The Bitcoin Blockchain Disrupt Payments? examines how the technology will threaten traditional banks’ role in the economy – if at all.
To put it simply, Citi concluded that while the technology behind bitcoin, combined with other innovations, may “radically” change finserv, bitcoin is far from a threat to banks – instead, it should be viewed as an opportunity, the FI said.
Many of the use-cases proposed by the industry for blockchain – like cross-border remittances – don’t actually see their traditional sources of friction solved by the technology, Citi said. Instead, areas in