States will respond to Bitcoin with their own crypto currencies, Citigroup CEO Michael Corbat is sure of that. In an interview with US business news channel Bloomberg this week, the New York banker said that this was particularly due to the risks and a control vacuum that states see in Bitcoin and other crypto currencies. However, he does not want to deny their great potential to the digital alternative currencies.
More and more major banks are publicly acknowledging the potential of Bitcoin profit
After Goldman Sachs CEO Lloyd Blankfein and ECB director Benoît Cœuré had already stressed in the past weeks that Bitcoin profit was taken seriously, Citigroup’s managing director Michael Corbat yesterday also spoke positively about the future of Bitcoin profit. On a panel of the US business news channel Bloomberg, he stated that he was convinced of the “budding” technologies.
When asked whether his bank was already confronted with customer demands for blockchain and crypto technology, the 57-year-old answered cautiously. Demand is still limited and rather concentrated. At the moment the Bitcoin is still “bulky”.
Nevertheless, one should not turn away from the technology.
“Technology [It] is real and something is coming, Corbat is sure.
With an annual turnover of almost 70 billion US dollars, Citigroup, together with 30 other major global banks, is rated by the Financial Stability Board (FSB) as particularly important for the global financial system. Along with Bank of America, JPMorgan Chase and Wells Fargo, it is one of the four largest banks in the USA.
Bitcoin profit will not let butter be taken from bread
Nevertheless, Corbat painted a bleak future scenario for Bitcoin profit outside his own onlinebetrug business. On the one hand, Western regulators in particular are tempted to let crypto currencies grow uninfluenced and skim off potentials. On the other hand, states would not let themselves be deprived of butter because of the risk that this could turn out to be a possible economic disruptive factor, for example in the area of money laundering.
He therefore does not believe that states would take the influence of other non-state actors lightly, for example in the area of taxes.
“It is likely that we will witness governments introducing their own digital currencies.
Corbat instead gives himself convinced in an interview.
No shot in the dark
A look at the news shows that Corbat’s forecasts are not a shot in the dark. The perceived risks and a lack of government control have already spurred the thoughts of regulators in several countries and led to the birth of their own digital currency alternatives.
As BTC-ECHO reported in October, media reports indicate that the Dubai government is planning its own state crypto currencies under the name emCash.
Russian President Vladimir Putin also announced the release of a state-controlled crypto ruble in October.
After all, the idea of state-controlled crypto currencies is not a new one among EU member states either. BTC-ECHO also reported that in August the director of the Estonian e-residency programme, Kaspar Korjus, had proposed to use an estcoin as a digital national currency. However, this was countered by a strong headwind from ECB President Mario Draghi.
At least with a view to the Western hemisphere and Europe, the corresponding advances are still reserved for the imagination.