Friday, October 4, 2024
spot_img
HomeBlockChainAsset TokenizationCiti Predicts CBDCs, Tokenization Will drive the Mass Crypto Adoption

Citi Predicts CBDCs, Tokenization Will drive the Mass Crypto Adoption

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 claims that Crypto’s mass adoption should be driven by decentralized digital identities, zero-knowledge proofs, Oracles, and secure bridges.

According to Henri Arslanian, co-founder of Nineblocks, the terrible circumstances surrounding the 2022 crypto crash and the accompanying concerns in the digital asset market are only likely to hasten CBDC development.

By 2030, Citi predicts that there will be $4 trillion to $5 trillion worth of tokenized digital securities, 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.

Citi noted down the dangers of CBDCs as “Central Banks Competing with Private Players, Loss of Privacy, Loss of Bank Deposits, and Limited Uptake.”

The company even shared its case studies on the digital euro, digital rupee, digital pound, and digital dollar in its report. 

In the same recent report, Citibank claims that the tokenization of financial and real-estate assets may be the “killer use case” that propels blockchain innovation. By 2030, tokenization is predicted to increase by an 80x factor in private markets and reach a value of up to $4 trillion.

Citi added that “the end state is a vision of a digitally native financial asset infrastructure, globally accessible, operating 24x7x365 and optimized with the smart contract and DLT-enabled automation capabilities, which enable use cases impractical with traditional infrastructure.”

Subscribe to The Crypto Times for more CBDC-related Updates!!

 

Post Disclaimer

The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.

RELATED ARTICLES

Most Popular

Recent Comments

error: Content is protected !!