Citibank’s latest report bitcoin: bitcoin is an opportunity rather than a threat, is a supplement to the bank
Citibank released a new research report (Report Download), report that bitcoin and other digital currency should not be deemed to be a threat to the subversion of the bank, the credit card network or traditional remittance providers, but the supplement of existing services.
The 56 page report that bitcoin and other digital currency can better develop new markets and allow banks to obtain new consumers, the center of the current payment system is not enough to cope with today’s business scale.
At the same time, Citibank also saw the use of public bring the potential of chain block.
The report pointed out that:
“Open networks such as bitcoin, its behind has make it in combination with other technology, can bring real innovation, supporting applications such as Internet of things (machine to machine payment).”
It is worth noting that the report found that bitcoin and other digital currency can affect the emerging market, and the payment system in these markets is not developed.
The report said:
“In the absence of good payment infrastructure in the country, we believe that an open like bitcoin to the center of the network in these countries can find some opportunities for development.”
In addition, the report in judging the feature of bitcoin whether to pay benefits become a bit picky. For example, the authors of the report said they did not need to believe that bitcoin blockchain can not be changed or no corruption is very suitable for the transfer of funds.
The report also mentioned many concrete block chain and bitcoin startups, and summarizes their digital currency and block chain network, including Gerbaud, bitcoin and etheric fang.
TranserWise has more advantages.
Remittance field is considered to be the most vulnerable to the effects of the field of lovers. The report found that the British money transfer service TransferWise the current cross-border payment costs are lower than bitcoin.
It is worth noting that, according to the report of bitcoin and TransferWise and the account of the account (account-to-account) classification comparison in 10 kinds of options for remittance remittance channels, bitcoin found from the United States to the lowest cost of funds transfer in new zealand.
Remittance outward from the United States in the channel, bitcoin by the United States to China transfer cost to account account (account-to-account) than the remittance option cheaper.
According to the report estimates of account account (account-to-account) remittance option transaction fee of 3.86%, bitcoin is 3.38%. In contrast, TransferWise’s payment of the cost of only 1.48%, has obvious advantages compared with bitcoin.
The researchers pointed out that bitcoin is converted into currency high cost and liquidity bitcoin existing market low are the challenges faced by bitcoin need to overcome.
More broadly, the report attempts to challenge the common sense of people about the bitcoin network, including the use of bitcoin in the existing financial business model in the.
The report said:
“We believe that the open networks such as bitcoin and if the mobile terminal, machine learning, big data and networking to combine, so will create new business models.”
For example, Citibank said, now there is a “misunderstanding” bitcoin: bitcoin provides a friction free trading system, but also questioned the bitcoin payment can maintain long-term low cost.
“In view of the bitcoin network for proof of work will produce a large amount of energy costs, we believe that these costs will be converted to high transaction costs, borne by the user, thus causing bitcoin costs more expensive than the center of the network.”
In other aspects, such as speed, scalability and resilience, the report believes that bitcoin and other digital currency does not necessarily have the advantage.
The report said the bitcoin payment network is a “flexible”, but also questioned the bitcoin network can be extended to support more transactions.