• Citigroup believes that mass adoption of blockchain technology will happen in the near future.
• Citi said that mass adoption will occur when more than a billion people are using blockchain technology without knowing they’re using it.
• Citi believes that CBDCs and the tokenization of financial, gaming and real-world assets will lead the way to mass adoption.
Citigroup Believes Mass Adoption is Six to Eight Years Away
U.S. banking giant 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 the tokenization of financial, gaming and real-world assets, according to the lender’s latest blockchain report. Citi compared blockchain innovation to the early days of gas-powered vehicles or digital cameras, noting that it often takes time for disruptive technologies to gain recognition and acceptance.
What Will Drive Mass Adoption?
Citi said that mass adoption will happen when more than a billion people are using blockchain technology without knowing they’re using it. Citi believes this will most likely happen through CBDCs as more governments start implementing digital currencies in their economies – currently over 20 central banks plan to issue or have already issued a digital currency which gives almost 2 billion people access to digital money in the coming years. According to Citi’s projections, CBDCs could hit a combined market cap of $5 trillion by 2030 in major economies with around 50% linked to distributed ledger technology.
Other Factors Contributing Towards Mass Adoption
In addition to CBDCs, other factors contributing towards mass adoption include social media payments and gaming applications powered by blockchains which allow users to interact with backends without being aware of its underlying technology – thereby driving up usage numbers without users even realizing it. Tokenization is also becoming increasingly popular as companies from all industries move from investigating benefits into trials and proofs of concept – thus creating an environment ripe for widespread implementation across multiple sectors such as finance, healthcare, gaming etc..
Benefits Of CBDCs For Blockchain Technology
While CBDCs may not necessarily require distributed ledger technologies for their implementations, they do provide a secure environment for those who want experiment with digital currencies due state backing – thus paving the way for wider public acceptance of blockchains overall despite any technical limitations posed by central banks themselves in terms of how these currencies are implemented.
Conclusion
In conclusion, Citigroup believes that we could be just six-eight years away from seeing massive widespread adoption of blockchain tech through central bank issued digital currencies along with tokenized assets across different industries such as finance, healthcare etc.. All these factors combined should help drive up usage numbers significantly over time leading us into an era where more than a billion people may ultimately be using this revolutionary new technology without even realizing it!