When a new technology is introduced in the market, it takes some time before it can adjust on a global level. The advent of the internet and social media websites both took a decade before booming up to their current status. Many people have compared cryptocurrencies and blockchain technology with the invention of the internet, and most experts agree that it is the eventual future of fintech and financial markets.
One of these people is the former CEO of Citigroup, Vikram Pandit. He served as the top executive at the multinational investment bank for five years. During a recent interview, Pundit claimed that the recent performance of the crypto market is just the tip of the iceberg. It is worth noting that the digital asset market showed multiple bull-runs in the current year and was able to acquire the $3.1 trillion market cap during its best performance.
Traditional Financial Institutions can’t Ignore Crypto Anymore
Speaking to the media, Pandit showed his bullish sentiment towards the cryptocurrency market. He claimed that during the next three years, every financial institution would have to open up to the idea of adding cryptocurrency to their portfolio. He was addressing the reporters at Fintech Festival in Singapore. He also explained that the fastest and most likely way that financial institutions will adopt cryptocurrencies is by offering custodial services or trading for their clients.
During the current year, a host of traditional financial institutions have decided to integrate cryptocurrency trading on account of the increasing demands from their clients. It is worth noting that individual traders with a limited amount of experience and expertise are always wary of pouring their savings into the digital asset market. Therefore, clients put pressure on their brokers and financial managers to provide them with cryptocurrency exposure.
Vikram Pandit had positive remarks about Central Bank Digital Currency projects. Such projects are subjected to a considerable amount of criticism from different factions of society in many countries. However, Pandit opines that CBDCs can positively reflect on the economy. He claimed that the current paper money system is lengthy, outdated, and expensive at best.
However, if the government or a central bank can launch a centralized legal tender based on blockchain technology, it can cut down on high costs and reduce environmental damage and pollution. He also claimed that for the time being, many sovereign nations are working on CBDC projects at the time, and during the next decade, the financial front for the entire world may be changed completely.