The Citibank report published recently is called “Bitcoin. At the tipping point“, and contains a lot of information about the movement of bitcoin, its prospects and growth in the global financial system.
More than 30 experts participated in the creation of the 108-page document: leading Citibank analysts and employees, as well as industry representatives, including Genesis, Greyscale, Chainalysis – and even the main DEFI platform Uniswap.
According to the speakers, bitcoin is now “on the rise” and in the near future may become the preferred currency for international trade.
The report says that these changes that have occurred with bitcoin in recent years are related to “specific improvements in exchanges, trading, data and depository services” that “grow and update in accordance with the requirements of institutional investors.”
As the report highlights, bitcoin’s advantage is in its global payments, including its decentralized design, lack of currency risks, fast – and potentially cheaper-money movement, secure payment channels, and traceability.
If we add to this its global prevalence and neutrality, then all these criteria, according to the drafters of the document, can make bitcoin the main currency for international trade.
The document also states that “large institutional investors and organizations prefer to participate in the bitcoin movement and support it”” and “regulators are beginning to lay the groundwork for this asset to potentially enter the mainstream.” At the same time, Citibank emphasizes that regulators will not hinder the development of bitcoin, and even themselves will create favorable conditions for its introduction to the international arena.
According to the report, bitcoin is an independent currency unit, it can leak and fit into any financial scheme, and this is its main advantage, but at the same time, all experts agreed that it is “a disruptive technology that can destroy the entire financial infrastructure.”
“Bitcoin is proof that the way the world’s governments and economic systems think about money no longer works. This forces investors to act in a way they have never done before. Bitcoin has changed the belief system, it has proven that our economic infrastructure is more fragile than ever, and the future that is better and more stable is right here.”
The report quickly spread across the Internet and even gained fame as a fairly complete document for any reader who is interested in bitcoin.
However, the findings of the Citibank report drew some harsh criticism by the Financial Times.
The newspaper’s journalists called the document “a truly horrifyingly bad report.“ They expressed doubts about the accuracy of the report, as well as the figures presented in it, and said that “Citi should retract this report immediately.”
The Financial Times called the report too optimistic about the prospects of bitcoin in the international financial arena, and also recalled the risks that can lead to undermining confidence in the leading cryptocurrency: for example, a massive failure in the blockchain, asset theft or regulators factor. The author of the article also noted that one of the largest stablecoins is not fully backed by the dollar.
Outrage at the report was so great that the editors of the Financial Times even sent a letter to Citibank pointing out the errors in the report. “It seems that six strategists at Citi don’t know that there is a 100-fold difference between basis points and percentage points. SAD!” the publication says.
The authors of the Financial Times article also shamed colleagues from CNBC, Forbes Crypto, Reuters, Bloomberg and Yahoo Finance, who released a series of publications and supported the optimistic conclusions of the report, “without the slightest question over its legitimacy.”