Citibank, a US-based multinational banking giant, has decided to abandon plans to roll out its own cryptocurrency, Business Insider reports.
The “Citicoin” project was under development in the bank’s innovation office in Dublin (Ireland), confirmed Gulru Atak, Citi’s current innovation lab chief. Instead, the bank will focus on the existing technology, namely the SWIFT platform.
“Based on our learnings from that experiment we actually decided to make meaningful improvements in the existing rails by leveraging the payments ecosystem and within that ecosystem, we are considering the fintechs as well or the regulators around the world as well, including SWIFT,” said Atak.
It seems that Citi’s own analysis showed that the bank would profit more from developing existing infrastructure than investing in its own cryptocurrency. The basic idea of the bank was to use crypto to streamline cross-border payments.
“If we are talking about cross border payments, how many banks do we have across the world – and how many of them are already on-boarded on SWIFT? And how long has it taken SWIFT to onboard all those banks?,” added Atak.
According to BI, SWIFT moves around $200 billion per day as it has around 11,000 registered users. Thus, Citi is working to further develop similar platforms, similar to their partnership with Nasdaq, to deliver a blockchain-based payment solution.
A month ago, Newconomy covered the story on JP Morgan issuing its own cryptocurrency – the JPM Coin. The digital coin is expected to make its debut in the coming months when it will be deployed for international payments for large corporate clients. Provided all goes well, JP Morgan will consider using the coin for payments on internet-connected devices.
The JPM Coin story created a noisy discussion in the community as the CEO of JP Morgan, Jamie Dimon, is regarded as one of the biggest critics of bitcoin. In 2017, Dimon labeled bitcoin as a “fraud”.
Citibank, a member of the Citigroup, has more than 200 years of experience in the provision of financial services. Founded in 1812 in New York, the banking giant is the fourth biggest bank in the US, with $1.38 trillion of assets under its control.
Its current market cap is estimated at more than $150 billion