Yesterday financial conglomerate Citigroup presented in a report its view on bitcoin (BTC), concluding that the leading cryptocurrency could make it the currency of choice for international trade. The institution believes that the cryptocurrency is currently at an "inflection point" going forward.
In an extensive report in which Citigroup experts believe that Bitcoin's global reach, neutrality, security, traceability and decentralized design would play in its favor in the coming years. According to the institution's experts, these characteristics are what will drive the massive adoption of BTC.
The report notes: "The perceptions that make bitcoin important continue to evolve and create new opportunities, while its perception of becoming mainstream increases," according to the report by six analysts from the financial group.
The authors call bitcoin the "north star," meaning a "compass" that is leading the cryptocurrency space and the evolution of a broader ecosystem for trading. In fact, Citigroup says bitcoin and the emergence of stablecoins, or stablecoins, are pushing central banks to consider their own digital currency options.
For Citigroup researchers, national governments, banks and even regulators have tried to limit bitcoin's growth as a digital system. However, that resistance "may be fading" due to the level of adoption that already exists.
"Large institutional investors and organizations are choosing to participate and support Bitcoin. Regulators are beginning to lay the groundwork for the asset to become mainstream," the paper highlighted.
The institution highlighted an aspect that until a few years ago was unimaginable to hear from a bank of this size: admitting that bitcoin has a transformative power in the world of finance.
On this point, Citigroup published: "The vision of bitcoin as a force that will transform the world may seem evident in a few more years. The fact that this progression has occurred in little more than a decade makes Bitcoin remarkable, regardless of its future."
Citigroup's comments on BTC would have had a positive effect on cryptocurrency markets. Satoshi Nakamoto's creation is showing a price of $48,500 per unit, up 10% from its price on Sunday, according to CoinGecko records.
This boost in bitcoin's price has been sustained since last year when corporate investments in cryptocurrencies became more evident. According to Bitcoin Treasuries, more than 1,350,000 bitcoins are already in the hands of companies or investment funds.
In total, companies have already injected more than $46 billion to bring BTC to their statements either as a hedging, investment or long-term savings mechanism. Among the most notable are Tesla, MicroStrategy, Square or the Grayscale fund.
