The financial sector was abuzz recently, with Citibank announcing a platform backed by blockchain technology to transform institutional savings into tokens.
This news drew interest from various quarters, including prominent financial educator and “Rich Dad Poor Dad” author Robert Kiyosaki, who tied it to Bitcoin.
Using the X (formerly known as Twitter) platform, Kiyosaki expressed curiosity about the potential ramifications this could have for Bitcoin and the US dollar, igniting a flurry of responses from the online community.
Citibank’s Dive 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, specifically focuses on cash management within the finance sphere.
This latest development is tailored to cater to institutional clients’ unique needs, leveraging blockchain technology’s features and smart contracts.
The announcement by the bank provides a deeper insight into the vision behind this initiative. According to the update, Citibank intends these smart contracts to act as modern substitutes for long-standing banking instruments like bank guarantees and letters of credit.
The decision symbolizes not just an adaptation to current technological trends but a response to the changing dynamics of the financial world. At its core, Citibank’s strategy revolves around recognizing and meeting the growing demand for ‘always-on,’ flexible financial services.
This demand comes in an age where businesses operate globally, and the need for instantaneous transactions is paramount. To address this, Citi Token Services is poised to change how institutions handle their finances.
The service promises to enable uninterrupted cross-border payments, ensure liquidity, and deliver automated trade finance solutions, all operating on a 24/7 basis.
Kiyosaki’s Inquiry And The Crypto Community’s Response
Kiyosaki’s inquiry on the X platform was straightforward: with Citibank’s new technological adoption, is this the end of Bitcoin and the US dollar as we know them? The crypto community was swift in its response, dismissing any looming threats to Bitcoin due to Citibank’s tokenization initiative.
BYE BYE Bitcoin & US Dollar? Citibank announced today it is offering bank block chain technology to turn institutional savings into Citibank tokens which can be used for instaneous 24/7 cross border transactions. Bye bye BC & US $?
— Robert Kiyosaki (@theRealKiyosaki) September 26, 2023
Shivam Sharma, a user on the X platform, emphasized the unique value proposition of Bitcoin, noting that Citibank’s tokens are essentially digital ledgers. They operate in a different space, he suggests, from Bitcoin, which has carved its niche as a decentralized currency.
Another user with the handle Happenings NFT said:
A software is not an asset & other banks don’t trust other banks. Banks will need a third party to facilitate instant cross-border payments because they don’t trust each other. This is why the JPM coin didn’t work.”
Featured image from iStock, Chart from TradingView