The increasingly large settings are moving towards cryptocurrency. Bitcoin (BTC) has broken records, but now the attention is mainly on stable records. American banks Citigroup are now mixing in the race: they are working on their own stablecoin and blockchain-based bank deposits.
Competition
CEO Jane Fraser revealed this week that Grootbank is seriously considering its own stable issue. The so-called Citigroup Stablecoin must contribute to the further expansion of the bank's digital payment options. In a recent speech, Fraser announced that the focus is not only on stability. Citigroup is also investigating the possibility of so-called 'token deposits.' These are digital representations of bank deposits, but then on the blockchain.
The CEO believes that the growth potential of this token deposit is greater than that of traditional stabilizers. It enables payments to be faster, cheaper, and more secure than conventional stablecoins, which are usually issued by third parties. Furthermore, if the bank itself offers token deposits, they will earn more from it.
Citigroup is not the only large bank further incorporating the world of cryptocurrency. Previously, competitor JPMorgan had confirmed that it could use its own blockchain solution. This includes the digital mint JPMD, which, like Fraser's idea, must become a digital deposit.
Other companies are also moving forward. For example, Amazon and Walmart have announced that they are researching their own Stablecoin. This could save the two companies billions of dollars each year in their e-commerce activities.
The genius act has brought clarity.
Wall Street's growing interest is due to Donald Trump's policies. Since his return to Washington, he has insisted on enforcing new pro-crypto legislation. When it comes to stabilizers, the genius act plays a particularly important role. The bill has already been approved by the Senate and will go to the House of Representatives tomorrow.
If the proposal is approved, it could lead to clear regulations. Stablecoin publishers will know exactly where they stand, while consumers will be better protected as companies must meet strict guarantees.
