The financial sector has been in turmoil recently, with Citibank to announce a platform supported by blockchain technology to convert institutional savings into tokens. This news attracted interest from several quarters, including prominent financial educator and “Rich Dad Poor Dad” author Robert Kiyosaki, who linked it to Bitcoin.
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Citibank dives into tokenization
Citibank’s recent dive into the realm of blockchain technology marks a significant shift for the institution. Their new offering, a tokenization service, focuses specifically on cash management within the financial sphere.
This latest development is tailored to the unique needs of institutional clients, leveraging the features and smart contracts of blockchain technology.
The bank’s announcement provides a deeper insight into the vision behind this initiative. According to the update, Citibank is planning to these smart contracts should act as modern replacements for long-standing banking instruments such as bank guarantees and letters of credit.
The decision symbolizes not only an adaptation to current technological trends, but also a response to the changing dynamics of the financial world. At its core, Citibank’s strategy is about identifying and meeting the growing demand for ‘always-on’, flexible financial services.
TThis demand comes at a time when businesses operate globally and the need for instantaneous transactions is of paramount importance. To address this, Citi Token Services is poised to change the way institutions handle their finances.
The service promises to enable uninterrupted cross-border payments, guarantee liquidity and deliver automated trade finance solutions, all operating 24/7.
Kiyosaki’s research and the crypto community’s response
Kiyosaki’s investigation into the X platform was simple: with Citibank’s new technology adoption, is this the end of Bitcoin and the US dollar as we know it? The crypto community reacted quickly and dismissed any looming threats to Bitcoin as a result of Citibank’s tokenization initiative.
BYE BYE Bitcoin and US dollar? Citibank today announced that it is offering banking blockchain technology to convert institutional savings into Citibank tokens that can be used for instant 24/7 cross-border transactions. Goodbye BC and US$?
— Robert Kiyosaki (@theRealKiyosaki) September 26, 2023
Shivam Sharma, a user on the X platform, emphasized Bitcoin’s unique value proposition, noting that Citibank’s tokens are essentially digital ledgers. They operate in a different area, he suggests, than Bitcoin, which has carved out its niche as a decentralized currency.
Another user with the handle Happenings NFT said:
Software is not an asset and other banks do not trust other banks. Banks will need a third party to enable direct cross-border payments because they do not trust each other. This is why the JPM coin didn’t work.”
Featured image from iStock, Chart from TradingView
