This Tuesday sparked off a wave of speculations in the crypto universe as renowned author and financial literacy champion, Robert Kiyosaki chimed in on the future of Bitcoin and the US dollar. The “Rich Dad Poor Dad” author was reacting to the announcement of Citibank’s recent foray into blockchain technology.
Citibank, a branch of global financial juggernaut, Citigroup Inc., unfurled the flag of its Citi Token Services on September 18. The new operation uses blockchain technology to simplify cross-border transactions by tokenizing their clients’ deposits.
Following this bold move by Citibank, Kiyosaki contemplated its potential implications not just on the traditional dollar, but also on Bitcoin. He was of the view that the introduction of Citibank tokens, capable of performing instantaneous cross-border transactions, could lead to a simultaneous fall of Bitcoin and the US dollar.
While Citibank’s groundbreaking step helps speed up payment processing via smart contracts, it could potentially spell a new era of round-the-clock transaction banking services for institutional clients by converting their deposits into digital tokens through a private blockchain network.
Kiyosaki’s unique perspective on the subject generated a surge of reactions from industry veterans. A section of the community opined that this scenario might not paint an ominous picture for Bitcoin. In fact, it could boost a broader acceptance and utilization of cryptocurrency.
Echoing these optimistic sentiments, Robert J. Salvador, the head honcho of DigiBuild, surmised that Citibank’s venture wouldn’t imperil Bitcoin. Instead, it could serve to accentuate the portability, accessibility, and unique value proposition of Bitcoin as an expedient mode of payment.
In line with his consistency, Kiyosaki has often referred to Bitcoin as the “digital counterpart” of tangible assets such as gold and silver, thereby implying its significance.
Blockchains have the potential to unsettle traditional financial business models, given their capacity for enabling direct peer-to-peer transactions. This could facilitate a shift in the landscape where intermediaries like banks, who traditionally had a monopoly over financial operations, could see their roles significantly diminish.
Additionally, this trend brings to the fore the question of trust. Trust in the legitimacy of blockchain technology could be significantly bolstered as mainstream financial players like Citigroup adopt it, thereby lending credibility to associated cryptocurrencies.
However, amidst Kiyosaki’s comments, the bigger picture reveals an increasing acceptance of blockchain technology by mainstream financial units. As evinced by Citibank’s move, it appears that the overlap of traditional banking and blockchain technology might be the defining feature of future finance. The impact of these advancements on Bitcoin’s fate, however, remains to be seen.
Source: Cryptonews
