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One of the 20 largest banks in the world in terms of badet value is abandoning its plan to create its own digital badet – and abandon all its cryptocurrency experiments. Instead, it is betting on a SWIFT.
Citibank is not following in JP Morgan's footsteps with creating its own cryptocurrency, believing that there are better ways to improve existing financial transaction systems, CoinDesk reports.
"Based on the lessons learned from this experience, we have really decided to make significant improvements to the existing rails," said Gulru Atak, Citibank Global Head of Innovations for Cash and Trade Solutions. "We are also looking at fintechs or regulators around the world, including SWIFT."
The bank has been trying for some time to launch its "Citicoin", a chain based blocks. Rumors first surfaced in 2015. At that time, Ken Moore, then director of innovation at Citi, told IB Times that the bank was already interested in technologies. distributed since "recent years".
It seems that Citibank has decided to step back from crypto-currencies to focus on short-term gains.
Building a cross-border payment system based on a chain of blocks is one thing, but all the banks in the world would then need to put this system in place. SWIFT payment system already has nearly 10,000 financial institutions around the world. Any new beneficial technology can be deployed quickly around the world and start making a difference.
The bank is still studying blockchain technology to improve its banking systems, but its short-term future is now less likely to include any form of cryptocurrency or digital coinage.
Earlier this year, JP Morgan announced "JPM Coin", its own interpretation of a cryptocurrency used specifically for cross-border institutional settlements. The news has made headlines, but in reality, given its degree of centralization, it is misleading to call it even a cryptocurrency.
Although cryptocurrency technology still attracts some banks, its future in the sector is not certain.
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Posted on March 18, 2019 – 15:15 UTC
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