Citigroup ditches the launch for its own cryptocurrency

Tuesday 19 March 2019 13:01 CET | News

Pilot cryptocurrency token testing has forced Citigroup to scrap the plans to launch its own crypto coin, according to Coindesk reports.

After the top management of the bank studied the results of the tests, they concluded that the existing technological solutions provided by SWIFT exceed the digital token capabilities in cross-border settlements. Citi is focused on using effective methods with quick impact to improve cross-border payments.

However, the bank suggested that they want to see the changes today rather than invest time and efforts into future technology. This decision comes after two major banks announced the development of their proprietary stablecoins: JP Morgan will have its JPM Coin, and Mizuho Bank is looking into yen-pegged stablecoin.

Although Citibank started to think about cryptocurrency in 2015, they have never officially announced the creation of Citicoin and never presented demo samples. In September 2018 Citigroup announced the plans to issue the receipts on digital assets. This was said to allow the bank’s clients to trade cryptocurrencies without actually owning them.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Citigroup, cryptocurrency, Token, cross border, stablecoins, digital token capabilities, payments, banks, trading
Countries: World