Citi has told the UK government it should consider creating its own digital currency, a newly obtained document has revealed.
The document, a response to the Treasury’s call for information on digital currency, was obtained by CoinDesk via a Freedom of Information request.
In the response, the global bank’s Treasury and Trade Services (TTS) Technology and Innovation Team states:
“The greatest benefits of digital currencies can be realised through the government issuing a digital form of legal tender. This currency would be less expensive, more efficient and provide greater transparency than current physical legal tender or electronic methods.”
Citi believes governments and banks should be at the centre of the “technological shift beyond paper and credit cards” into more digital forms of money.
“To be a key participant may mean that banks and governments need to work together to develop digital currencies that supercede the existing physical and electronic solutions,” Citi adds.
It goes on to say that the act of a government issuing a digital currency would address the AML, KYC and sanctions concerns faced by market-backed digital currencies such as bitcoin. This could create privacy concerns for citizens, but Citi claims these could be offset by the additional