- Citigroup CEO Michael Corbat said today that sovereign digital currencies are “inevitable”.
- Citigroup is helping governments around the world develop them, he said.
- Corbat didn’t say which governments.
Citigroup CEO said in an interview today that central bank digital currencies are “inevitable” – and revealed that the multinational is helping governments around the world develop them.
“We have worked with governments around the world to create and commercialize them, and I think this will be inevitable,” said Michael Corbat, Citigroup CEO since 2012 Bloombergs David Rubenstein.
Corbat went no further on how Citigroup helped governments develop sovereign digital currencies – better known as central bank digital currencies (CBDCs). Citigroup officials did not respond immediately DecryptPlease comment.
Citigroup’s CEO also said during the interview that the value of a cryptocurrency depends on the “underlying nature” of the asset. “I think it depends on what the currency’s underlying is,” he said when asked if cryptocurrencies were “the future” or a “passing fantasy”.
“Some have been compared to modern gold, others to alternatives. I think we’ll see a sovereign in the not too distant future – I’m not going to say crypto – but digital currency will come out. “
While he didn’t mention Bitcoin or other digital assets in the interview, Corbat said, “Some of these currencies will just be continued alternatives, continue to be different sources of payment that people can avail depending on the underlying nature of their benefits. ”
Corbat’s remarks come as governments around the world race to develop a functioning CBDC.
Some CBDCs are similar to cryptocurrencies like Bitcoin and Ethereum in that they sometimes use blockchain technology. But they differ just as they are centralized (controlled by a government in contrast to Bitcoin) and pegged to fiat currencies such as the euro or the US dollar.
They are found useful as they eliminate the need for cash. Make payments faster; and help fight crimeafter a study from the Bank for International Settlements.
Central banks around the world from the European Central Bank to the US Federal Reserve all are concerned with CBDCs – but none have actually developed one. China is way ahead of the game and has already done so tried a digital version of the renminbi.