Citigroup CEO: Government must issue state-sponsored digital currencies

Photographer: Jerome Favre/Bloomberg via Getty Images

Citigroup CEO Michael Corbat recently said that Bitcoin must not pose any threat towards the global financial establishment, and to prevent it from happening, governments must make state-sponsored digital currencies of their own.

In an interview at the Bloomberg Year Ahead Summit, the CEO said:

“I don’t think governments are going to take lightly other people coming in and potentially disrupting their abilities around data, around tax collection, around money laundering, around know-your-customer. It’s likely that we’re going to see governments introduce, not cryptocurrencies – I think cryptocurrency is a bad moniker for that – but a digital currency.”

Statements such as these are more common now, with the values of digital currencies going steadily upwards, with Bitcoin still miles ahead of its fellow cryptocurrencies. The digital currency top-dog currently trades at $7,174 according to CoinMarketCap, going down from close to $7,800 after news of the Segwit2x suspension caught investors and crypto-enthusiasts alike by storm.

Yet despite Bitcoin’s continuous rise in value, there are still those who oppose the digital currency, Societe Generale CEO Frederic Oudea for instance. He stated that Bitcoin is a bubble that will burst soon due to its anonymity and the fact that it still isn’t regulated by any governing bodies.

Billionaire technology investor and entrepreneur Mark Cuban also has a different view on things. According to him, due to Bitcoin’s limited capacity (does not amount to what Visa or Mastercard can do), it should be more of a store of value rather than a currency.

Even Jamie Dimon, JPMorgan Chase CEO, doesn’t think regulatory authorities will allow digital currencies to push through without eyes watching over it. Back in September, he was quoted saying:

“Someone’s going to get killed and then the government’s going to come down. Governments like to control their money supply.”

Still, the future of state-issued cryptocurrencies is already breaking ground in some countries, particularly Russia. In an article by The Daily Mail, President Vladimir Putin has since permitted the country to launch their own digital currency called CryptoRuble. According to communications master Nikolay Nikiforov, once the Cryptoruble is released, mining of other digital currencies will be banned.