Citi: Bitcoin at 'Tipping Point' as Institutions Come on Board

Looking forward, a Citi report suggests bitcoin could "become the currency of choice for international trade."

AccessTimeIconMar 1, 2021 at 11:53 a.m. UTC
Updated Sep 14, 2021 at 12:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin is at the “tipping point of its existence” thanks to large institutional investment and growing regulatory groundwork, according to a new report by Citi obtained by CoinDesk.

While the perception of the cryptocurrency varies greatly, it is undoubtedly the inspiration for a blockchain-based economy and has created a new decentralized cryptocurrency market, according to the paper by Citi Global Perspectives and Solutions (GPS), the bank's "thought leadership" arm.

Citi describes Bitcoin as blockchain's "North Star," owing to its core innovations that formed the building blocks that launched the ecosystem. Whether or not it cedes this status to stablecoins or central banks digital currencies (CBDCs) depends on how it is able to deal with inefficiencies relating to speed, scale and so on.

It will also be significant whether institutional interest cools as life returns to normal post-COVID-19 and inflationary fears abate. "Dampening (sic) institutional enthusiasm would remove a key source of support to Bitcoin and potentially the broader ecosystem, thus pushing it back to its more speculative roots," the bank paper argues.

Citi's conclusion references the oft-repeated quote by Arthur Schopenhauer: “All truth passes through three stages: First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident.”

"The fact that this progressions (sic) has occurred in just over a decade makes Bitcoin remarkable regardless of it future," the report concludes.

Looking forward, the report suggests bitcoin could "become the currency of choice for international trade," thanks to its "decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about