Large financial institutions are going to "actively think" about whether they should or not start offering cryptocurrency-related services in the next couple of years. Citigroup's former Chief Executive, Vikram Pandit, who invested in Coinbase and Alchemy Insights, also called on central banks to understand the benefit of a central bank digital currency (CBDC), Bloomberg reports.
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"[In] one to three years, every large bank and, or securities firm is going to actively think about 'should not I also be trading and selling cryptocurrency assets?'," Pandit said.
He also says the currency model of transferring money around the globe is "cumbersome" and creates a lot of "deadweight" cost. Pandit left Citi as CEO after the bank's directors concluded his mismanagement of operations caused "setbacks with regulators and cost credibility with investors," Bloomberg reported, citing a person with the matter. In May 2016, Pandit and Atairos Group created a new operating company called The Orogen Group, to invest in financial services companies with backing from Comcast Corporation.
Earlier this year, Citigroup started offering cryptocurrency services for its wealthy clients. The new services led by Alex Kriete, Co-Head of Digital Assets at Citi, and Greg Girasole, Portfolio Manager at Citi. The newly-formed group under Citigroup's plan helps wealthy clients to invest in cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDC).
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