In an interesting turn of events, a traditional bank has been experimenting with its own cryptocurrency. Citibank has developed at least three of its own cryptocurrencies based on the same principles as Bitcoin.
This is on the heels of other major league bankers admitting that block chain technology makes some traditional financial services redundant. The traditional banking industry stands to gain a great deal by adopting Bitcoin into its strategy, and this is why it probably comes as no surprise to many readers that Citibank would experiment in such a way.
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The question remains as to why they would use their own cryptocurrency rather than simply use bitcoins to make inter-bank transactions, or whatever plans they had for using the cryptocurrencies. There has been no direct statement of reasoning on this aspect, but nonetheless, it would seem there must be some fundamental need that Citibank had, causing it to develop its own cryptocurrency. It would seem a much more reasonable way to store large sums of money, digitally rather than physically, and only have to ship out cash money now and then.
The adoption of Bitcoin by the banking system represents a step forward for the nascent digital currency movement, in that serious acknowledgement at this level means Bitcoin (and others) is more certainly here to stay. After all, it wasn’t that long ago that Bitcoin was dismissed by many as a ponzi scheme and still others as unrealistic. Now entire new systems in major banks are being built on the same idea.
Featured image by bilciu / Shutterstock.