The former boss of Citigroup Inc., Vikram Pandit predicted that the majority of financial institutions will begin cryptocurrency assets trading in lieu of the decentralized industryâs inevitable growth. Pandit spoke at the Singapore Fintech Festival event and told Bloomberg that the âshift will be implemented sooner than later, within merely one to three years.
In âone to three years, every large bank and, or securities firm is going to actively think about âshouldnât I also be trading and selling cryptocurrency assetsïž'â, Pandit told Bloomberg.
Furthermore, Pandit who has invested in decentralized crypto businesses like, Coinbase Inc. and Alchemy Insights Inc. has also emphasized the importance of Central Bank Digital Currencies (CBDCs), calling them a âbig hopeâ. He noted that Central Banks around the world need to accept and adopt CBDCs if not the decentralized crypto, as economies prepare to step into Web3.
âMy big hope is that central banks around the world understand the benefit of a central bank digital currency, and move on to accept, adopt themâĶa central bank digital currency, which is available to you and me, and every other retail participant around the world,â, Pandit told Bloomberg. He further added that cross-border transactions and the attempt to modernize a paper-based, i.e., the traditional fiat banking system is âcumbersomeâ and creates a considerable amount of âdeadweightâ cost.
While Pandit supports both, decentralized crypto as well as CBDCs, but Central Banks around the world stay divided with only opting for one of these options. Countries like El Salvador, that chose Bitcoin legal tender are performing exceptionally. Not long ago, the Salvadoran President, Nayib Bukele declared the Bitcoin legal tenders success on Twitter, further announcing that profits from Bitcoin purchases will be sponsoring 20 schools and a hospital in the country.
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