Banks have been entering the crypto space quite quickly in 2021. It is also clear that the adoption of this technology by banks has created a very positive sentiment surrounding it. Now the former Citi CEO is predicting that all major banks will enter the crypto space within the next 1-3 years. This also includes central banks that have largely avoided crypto to date. With this adoption, millions of users will have access to trading and other services, which will boost crypto prices.
Cryptocurrency will be adopted by all major banks
The former CEO of Citigroup spoke last week at the Singapore Fintech Festival about crypto and CBDCs (Central Bank Digital Currencies). Vikram has worked with other major firms, including Morgan Stanley, in the past. Additionally, he co-founded the investment firm Orogen in 2016, where he currently serves as CEO. He has a lot of experience, and his point of view should be analyzed.
According to him, all major banks and firms will consider offering crypto trading services within the next few years. Here is an important point to consider. Money is moving from banks to crypto exchanges, and if they don’t provide the same services, they won’t be able to make money. In order for banks to profit, they need money they can lend and invest, but if everything goes into crypto, that won’t be possible.
The process has already begun
Some of the major firms that looked down on crypto a few years ago are now offering services in the space. It will simply be a matter of time before the remaining ones, along with the central banks, follow suit. There is a huge potential here, and delaying the process will just reduce profits for banks.
Vikram believes that central banks should already understand the importance of CBDCs and adopt them.Vikram also says that he thinks that central banks should already understand the importance of CBDCs and adopt them. Blockchain and the entire crypto industry will be transformed by that.
What are your thoughts on the former Citigroup CEO saying that all major banks will enter the crypto space? And do you think it will really be possible? Share your thoughts below. Please share our content with your friends if you found it informative.