Citigroup, one of the big four financial institutions in the United States, has recently published a report titled “Bitcoin: At The Tipping Point” in which the organization claims that cryptocurrencies are ready to become mainstream.
The report was officially published on March 1st at a time when companies like Tesla, Paypal, Twitter, and Mastercard have been vocal about their interest to integrate cryptocurrencies with their existing financial models.
Citi’s Global Perspectives & Solutions (GPS) section was the division in charge of writing the report, following its mission to help investors, “navigate the global challenges, identify future themes, and prosper in a fast-changing world”.
According to the report (PDF), 35% percent of small and medium businesses in the United States accepted BItcoin as a payment method in 2020, which has boosted the adoption of the cryptocurrency by allowing investors to use it as an alternative to traditional payment methods and cash.
Citi Sees Crypto Adoption Happening
While the report is primarily focused on Bitcoin due to its prominent role in the cryptocurrency ecosystem as the “North Star”, the financial group believes that cryptocurrencies as a whole will be part of the mainstream economy in the future following Bitcoin’s potential to become the primary currency for international trading.
Citi believes that Bitcoin could offer multiple benefits over central bank digital currencies (CBDC) and stablecoins, such as borderless design, lack of FX exposures, faster and cheaper money movements, secured payment, and traceability.
Bitcoin Still Has Some Obstacles to Overcome
2021 has been the most important year for Bitcoin since its launch back in 2009, with the trading volume during the first 3 weeks reaching $500 billion, twice the volumes of the entirety of 2017 and 2018 combined.
While Bitcoin has experienced growing institutional adoption and the resulting increase in confidence from the general public it entails, the…