Citi says Bitcoin could Replace the Mainstream Financial System, or it Will Disappear

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“In this scenario, bitcoin may be optimally positioned to become the preferred currency for global trade,” a team of Citi analysts led by Sandy Kaul, global head of Citi’s business advisory services, said in a report.

“It is immune from both fiscal and monetary policy, avoids the need for cross-border foreign exchange (FX) transactions, enables near-instantaneous payments, and eliminates concerns about defaults or cancellations as the coins must be in the payer’s wallet before the transaction is initiated.” He added

Bitcoin is digital gold, says Citi

The report speculated about the endorsement of Bitcoin by financial institutions such as MasterCard, Bank of New York, PayPal, and other companies like the electric car manufacturer Tesla (NASDAQ: TSLA).

It added that the scarcity of Bitcoin made investors compare the digital currencies to gold; describing it as “digital gold”. Since last year, Bitcoin saw a 400% following the institutional interest. It has since plunged back 20% last week, trading at $47,800 on Monday.