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


However, the financial company argued that cryptocurrencies still face “obstacles and challenges.” These obstacles could should overcome involving “upgrades in the way the marketplace works.” This, they said, will provide comfort to major investors about digital tokens. With these hurdles tackled, the crypto market will become a more trust-worthy market.

The company added that more cryptocurrency regulations will be applied in the future with the growing interest in Bitcoin. It said that regulations could be a negative factor that would scare innovative developers away.

“Many of the most innovative and talented developers may choose to withdraw from established platforms deploying more extensive oversight and monitoring. This could end up dividing the liquidity in the system.”

In conclusion, Citi said: “The future of Bitcoin is unknowable. Developments are likely to prove decisive. The currency balances at the tipping point of mainstream acceptance or a speculative implosion.”

Last month, Citigroup owner of Citi Bank lost a lawsuit for retrieving $500 million it mistakenly wired to Revlon. The mistake is one of the largest in the history of U.S. banks.