In 2021, banks have been entering the crypto space quite fast. And it is clear that this adoption from banks has created a very positive sentiment around the topic. And now the Former Citi CEO says that he thinks all major banks will enter the crypto space in the next 1-3 years. In fact, this also includes central banks that have mostly stayed away from crypto till now. This adoption will bring trading and other services to millions of users, which will boost crypto prices.
All major banks will enter the crypto space
In the Singapore Fintech Festival event last week, the former CEO of Citigroup shared his outlook on crypto and CBDCs (Central Bank Digital Currencies). Vikram has a lot of experience and has worked with other major firms like Morgan Stanley in the past. He also co-founded the investment firm Orogen in 2016, where he is the current CEO. So, he does have a lot of experience, and his point of view is something to be analyzed.
He has said that in a few years, all major banks and firms will think that shouldn’t they offer crypto trading services. See, there is a very important point of view here. We should understand that money is moving out of banks to crypto exchanges, and if they don’t provide the same services, they won’t be able to make money. Banks need money that they can lend and invest to make profits, but if everything goes into crypto, that won’t be possible.
It has already started
A lot of major firms like JPMorgan, Goldman Sachs that looked down on crypto just a few years back have come around to offering services in the space. So, it will be a matter of time before the remaining ones, along with central banks, come around too. The potential is huge, and delaying the process is just going to reduce profits for banks.
Vikram also says that he thinks that central banks should already understand the importance of CBDCs and adopt them. That will be a game-changer for blockchain and the entire crypto industry.
What are your thoughts on the former Citigroup CEO saying that all major banks will enter the crypto space? And do you think it will really be possible? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.