Reshab AgarwalCitigroup has been planning to enter the crypto space for a long time. And now it has finally adopted Bitcoin with open hands. The demand for crypto has been increasing, and so they have appropriately taken steps on the same. Recently, Citigroup digital asset unit has been launched that will solely focus on cryptocurrency and blockchain. The unit will be a part of their wealth management division and will focus on developing products related to the same.
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The announcement by CitiBank
The news regarding this new digital assets unit from Citigroup was provided by The Block, which they got through the memo. The memo also said that this new unit is due to the development in the crypto space, advancement of blockchain technology and more. This unit will be headed by Alex Kriete and Greg Girasole. Their primary goal will be to develop products that will provide a solid value proposition to the investors.
The year of bank adoption
Apart from Citibank, we also have many other big names that have recently entered the crypto sector. This includes JP Morgan, Goldman Sachs, Bank of America, among others. In 2020, we saw a huge institutional adoption and that was the starting point of success for Bitcoin. And even then, it was speculated that 2021 would be the year for bank adoption.
We have already seen most major banks starting to adopt crypto and proving related services to their investors. If the demand increase, there is no meaning in holding back the earning potential for investors. There are risks to the same, so banks are not letting users go full into Bitcoin. At the same time, they also have minimum criteria to be even eligible.
Yes, there are some banks that are not liking this change, and it is obvious that they have not started crypto trading yet. But if the adoption continues to rise, sooner or later, every single bank will have to come around. This includes all the Indian banks that are creating hurdles for crypto exchanges in the country.
What’s next?
We have seen institutional adoption and bank adoption till now. Now the next step will be to see countrywide adoption. El Salvador has already started it, and reports suggest that many smaller countries will soon follow suit. In the next two years, we might be able to see almost all small countries with a poor economy trying to get in on the Bitcoin cart. So I would say let the FUDs end and wait for several big developments in BTC by the end of the year.
What are your thoughts on Citigroup launching its own digital asset unit under the wealth management division? And do you think that some banks that are yet to adopt crypto will follow suit? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: El Salvador is giving away $30 in Bitcoin to boost adoption.