Crypto In Major Banks And Securities Firms Is Inevitable, Citi Group Ex-CEO
Crypto has been making the rounds through the industry and with the multiple bull runs in just 2021 alone, it has not slowed down or come up for air. This is because interest in the market has grown tremendously in this time frame. Investors, no matter their financial background or standing, are beginning to see the market for what it really is; a gold mine that is open to the public.
Individual investors have been more inclined to take on the risks that come with investing in crypto, with institutional investors being warier of the market. However, this has started to change in the last year or so. Institutions which has strongly objected to the acceptance of cryptocurrencies have softened their stance and begun to provide exposure to the market for their clients. Vikram Pandit, the former CEO of Citigroup, says this is just the beginning.
More Crypto Adoption Is Coming
Vikram Pandit, who served as the CEO of Citigroup for five years, gave his bullish take on the crypto market going forward. While most would be conservative with the time frame for which they saw big institutions going into crypto, Pandit put it in the next one to three years.
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Speaking at the Singapore Fintech Festival event, Pandit said that he was expecting major financial institutions to get more into the crypto market. He explained that they would either do this through trading or by providing crypto services to their clients.
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This has been the case with big banks like Goldman Sachs that have given in to pressure from their clients about providing exposure to the crypto market. They have done this through providing trading services or providing crypto services that would give these clients the exposure they desire.
Pandit stressed that “in one to three years, every large bank and/or securities firm is going to actively think about, ‘Shouldn’t I also be trading and selling cryptocurrency assets?’”
Central Banks Need To Get Onboard
The issue of CBDCs has been a touchy one in crypto ever since the idea was introduced. Crypto enthusiasts have expressed fear that this may give the government the power to control their assets even more. However, this sentiment has not been shared by everyone in the space and Pandit is one.
The banker and investor wants a CBDC that anyone can use around the world. Pandit is not a fan of the current paper-based banking system, which he referred to as “cumbersome” with “deadweight” costs. Instead advocating for central banks around the world to accept crypto by creating CBDCs.
“My big hope is that central banks around the world understand the benefit of a central bank digital currency, and move on to accept, adopt them,” said Vikram Pandit.
With the rate at which governments are researching and working on their own version of a central bank digital currency, it may not be long before the investor will see the monetary system he craves become a reality.
Featured image from Investopedia, chart from TradingView.com