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17 November 2017
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Governments will have no choice but to issue digital currencies

09 November 17 | Michael Corbat
Michael Corbat

COMPANIES

IBI Group

Consultant - GREECE

Savills

Consultant - GREECE

Solum Property Solutions

Consultant - GREECE

ETAD.A.E.

Public entity - GREECE

PEOPLE

Antulio Richetta

Director IBI Group
There’s now one Wall Street chief executive officer who says bitcoin presents a real enough threat to the financial system that governments will have no choice but to issue versions of their own.

 

“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,” Citigroup Inc. CEO Michael Corbat said in an interview at the Bloomberg Year Ahead summit in New York.

“It’s likely that we’re going to see governments introduce, not cryptocurrencies -- I think cryptocurrency is a bad moniker for that -- but a digital currency.”

That’s a fresh perspective from an industry in which some leaders have dismissed bitcoin’s viability as a currency and its run past $7,000.

Instead of focusing on what bitcoin can’t do, such as replace money or function as a store of value like gold, Corbat is more concerned by its ability to bypass many of the protections built into regulated banking.

Corbat made clear that he’s still very positive on the underlying technology. His bank is experimenting internally with its own currency, dubbed Citicoin, which can reduce friction in international foreign-exchange transactions.

It’s also partnered with Nasdaq Inc. to use blockchain to help trade private shares.

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