Citibank indicates in a new report that cryptocurrencies are changing the digital payments sector
The international bank attached to Citigroup, Citibank, recently published a report in which it recognizes that cryptocurrencies are generating important changes in the digital payments ecosystems, at the same time that their market has grown in recent years.
This is indicated by the Citibank researchers, who recognize that cryptocurrencies are no longer a “novelty of the Internet” and in light of this, they started to offer a plan for organizations that plan to adopt cryptocurrency payments and / or invest in these assets as a reserve of value.
In this regard, the report reads:
“Cryptocurrencies have evolved from being an obscure internet novelty to reaching a two trillion dollar market cap. Whether or not cryptocurrency disrupts the payment system as we know it, it has sparked new thinking in payment infrastructure, processing, and accounting, in addition to its increasing adoption as a store of value,” Citi said.
These statements come months after Citibank carried out a proof of concept jointly with the Inter-American Development Bank (IDB), precisely working with Blockchain to promote international payments from the US to Latin America.
Previously, the entity also published another report where it spoke of the benefits of Bitcoin, as well as its usefulness to carry out commercial operations.
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Regarding the interest seen among companies in adopting payments with cryptocurrencies and / or investing as savings, the Citibank team recommends guaranteeing at least these three conditions:
“Firstly, does the treasury and accounting team have the correct tools to process crypto. Secondly, which cryptocurrencies will be accepted as a form of payment. Thirdly, another critical point that needs to be decided upon is whether or not the organization will be holding cryptocurrencies received as a payment on the balance sheet.”
Finally, in the face of interest from interested companies, Citibank reiterates that the greatest risk continues to be the volatility present in the crypto ecosystem.
“When accepting crypto, an organization is likely to want to fix the price back into their functional currency. As a result, the price flexes in crypto rather than fiat currency. While this provides the organization a tool to manage price risk, the real price risk sits with the crypto remitter, which is typically an organization’s client or customer”