Citi believes governments and banks should be at the centre of the technological shift beyond paper and credit cards into more digital forms of money. Citi adds that to be a key participant may mean that banks and governments need to work together to develop digital currencies that surpass the existing physical and electronic solutions.
The call for information goes on to say that the act of a government issuing a digital currency would address the AML, KYC and sanctions concerns faced by market-backed digital currencies such as bitcoin. This could create privacy concerns for citizens, but Citi claims these could be offset by the additional value provided by the new currency.
Citi asserts that Bitcoin’s underlying blockchain technology can be used in ways that will increase transparency and efficiency, benefiting not only consumers and merchants, but governments and regulators too.
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