Citi Forecasts CBDCs and Tokenization Will Drive Mass Adoption of Cryptocurrencies

Citi Forecasts CBDCs and Tokenization Will Drive Mass Adoption of Cryptocurrencies

News, CBDC News

The industry-leading Citi Banks “Money, Tokens, and Games: Blockchain’s Next Billion Users and Trillions in Value” report states “CBDCs could have at least 2 billion users and over $5 trillion in circulation by 2030 and a half could be using partly distributed ledger-linked (DLT) models.”

The bank says that the widespread use of cryptocurrencies should be driven by decentralized digital identities, zero-knowledge proofs, Oracles, and secure bridges.

Henri Arslanian thinks that the terrible conditions surrounding the 2022 crypto crash and the worries that followed in the digital asset market are likely to speed up the growth of CBDC.Henri Arslanian is a co-founder of Nine Blocks.

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According to Citi, there will be between $4 trillion and $5 trillion in value of tokenized digital securities by 2030, with 1% of corporate and quasi-sovereign bonds, 7.5% of real estate funds, 10% of PE/VC funds, and 2% of repo, securities financing, and collateral markets being tokenized.

Central banks competing with private players, loss of privacy, loss of bank deposits, and limited uptake were listed by Citi as the risks of CBDCs.

Even case studies on the digital euro, rupee, pound, and dollar were provided by the business in the report.

According to the same recent study from Citibank, the “killer use case” for blockchain innovation may be the tokenization of financial and real estate assets. By 2030, tokenization is expected to grow by a factor of 80 in private markets and be worth up to $4 trillion.

“The end state is a vision of a digitally native financial asset infrastructure operating 24 hours a day, 7 days a week, and optimized with smart contracts and DLT-enabled automation capabilities, which enable use cases impractical with traditional infrastructure,” Citi continued.

Compiled by Coinbold

blockchain, CBDC