The financial sector was in uproar recently, with Citibank bitcoin-spark-to-benefit/” target=”_blank” rel=”nofollow”>announcing a platform backed by blockchain technology to transform institutional savings into tokens. This news attracted interest from various quarters, including prominent financial educator and author of “Rich Dad Poor Dad,” Robert Kiyosaki, who linked it to bitcoin.
Using platform
Citibank’s dive into tokenization
Citibank’s recent immersion in the blockchain technology space marks a significant change for the institution. Its new offering, a tokenization service, focuses specifically on cash management within the financial sphere.
This latest development is designed to meet the unique needs of institutional clients, taking advantage of the features and smart contracts of blockchain technology.
The bank’s announcement provides a deeper insight into the vision behind this initiative. According to the update, Citibank It intends These smart contracts will act as modern substitutes for long-standing banking instruments such as bank guarantees and letters of credit.
The decision symbolizes not only 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 flexible, always-on financial services.
tThis demand comes at a time when businesses operate globally and the need for instant transactions is paramount. To address this, Citi Token Services is poised to change the way institutions manage their finances.
The service promises to enable uninterrupted cross-border payments, ensure liquidity and offer automated trade finance solutions, all running 24/7.
Kiyosaki’s query and the crypto community’s response
Kiyosaki’s question about Platform The crypto community was quick in its response, dismissing any imminent threat to bitcoin due to Citibank’s tokenization initiative.
GOODBYE bitcoin and the US dollar? Citibank announced today that it is offering banking blockchain technology to convert institutional savings into Citibank tokens that can be used for instant cross-border transactions 24/7. Goodbye BC and US dollars?
—Robert Kiyosaki (@theRealKiyosaki) September 26, 2023
Shivam Sharma, a user of platform emphasized bitcoin‘s unique value proposition, noting that Citibank tokens are essentially digital ledgers. They operate in a different space, he suggests, from bitcoin, which has carved out a niche for itself as a decentralized currency.
Another user with the Happenings nft identifier saying:
A software is not an asset and other banks do not trust other banks. Banks will need a third party to facilitate instant cross-border payments because they don’t trust each other. “That’s why the JPM coin didn’t work.”
Featured image from iStock, chart from TradingView
