Bitcoin and the rise of State Cryptocurrencies

At The Year Ahead summit in New York, Bloomberg interviewed Michael Corbat, CEO at Citigroup. He predicted that bitcoin’s threat to the financial system will lead to state-sponsored digital currencies, as governments will have no choice. According to the CEO, governments won’t accept the disruption which can be caused by bitcoin and other cryptocurrencies. As a result governments are going to answer with their own digital currencies.

Michael Corbat stated: “I don’t think governments are going to take lightly other people coming in and potentially disrupting their abilities around data, around tax collection, around money laundering, around know-your-customer.”

Corbat’s point of view is related to the fact that mainstream adoption is rising for bitcoin, with a bitcoin price that is continuously growing. Regarding the ability of bitcoin to bypass various protections built by the financial institutions, Corbat added that we’re likely going to see governments introduce digital currencies of their own. He also said that “cryptocurrencies” would be a bad nickname for these state sponsored tokens.

During the interview Corbat encouraged people to buy cryptocurrencies and use them on their everyday lives.He then said that people will find out that they are still “pretty clunky.” However, just like most Wall Street executives, Corbat argued that the underlying blockchain technology has potential and shouldn’t be dismissed.

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Written by Brad Chillum

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