• Citigroup believes that mass adoption of blockchain technology is six to eight years away and will be driven by central bank digital currencies (CBDCs) and tokenization of financial, gaming, and real-world assets.
• Citi believes that more than a billion people will use blockchain technology without knowing it, which will largely happen through CBDCs as more governments start implementing digital currencies in their economies.
• According to Citi, social media payments and gaming could also drive mass adoption of blockchain tech.
Citigroup’s Take on Mass Blockchain Adoption
U.S. banking giant Citigroup recently released a blockchain report suggesting that mass adoption of blockchains is six to eight years away and will be driven by the implementation of central bank digital currencies (CBDCs) as well as tokenization of financial, gaming, and real-world assets.
The Benefits of CBDCs
Citi believes that the world usually does not recognize the value and benefits of disruptive technologies at first due to blockchains being an “invisible” backend infrastructure technology with no prominent consumer interface like other inventions such as cars or cameras have. However, Citigroup predicts that once more than a billion people are using blockchain technology without even knowing they’re using it—which they believe can happen through CBDCs—mass adoption will occur. As of March 2021, over 20 central banks are either planning or already implementing digital currencies into their economies giving almost 2 billion people access to digital money in the coming years. Citi estimates that these CBDC’s combined market cap could reach $5 trillion by 2030 with 50% being linked to distributed ledger technology. Despite most central banks not utilizing DLT for their own CBDC projects, Citi still sees this as a positive step forward for overall blockchain adoption due to its secure environment backed by state support which encourages experimentation with digital currency use cases.
Other Possible Drivers
In addition to CBDCs driving mass adoption for blockchains according to Citi; other possible drivers include social media payments and gaming platforms which rely heavily on distributed ledger tech making them easier to use while providing increased safety measures for users‘ data protection in comparison to traditional payment systems such as credit cards or cash transactions.
Momentum on Adoption Positively Shifting
According to the research report momentum on blockchain adoption has been shifting positively now that governments, large institutions, and corporations have moved from investigating the benefits of tokenization towards trials and proofs concept development stages leading up towards full scale integration into practical applications across various industries including finance healthcare etc…
Citigroup believes that mass adoption is close at hand once more than a billion people are using blockchains without even realizing it—which they believe can best be achieved through central bank digital currencies allowing individuals worldwide access to secure digital currency use cases backed by state authorities encouraging experimentation with new innovative applications built upon distributed ledgers creating potentially revolutionary opportunities within any industry looking for efficient secure solutions powered by DLT technology