Citi analysts believe blockchain technology will see trillions in value, citing the rise of tokenization and CBDCs worldwide.
According to the report by the researchers of the investment bank, while the adoption of blockchain technology is slow, the technology is approaching an important milestone.
Blockchain Technology Promising Future
“Almost anything of value can be tokenized,” Citi said in its March report. The bank estimates that up to $4 trillion of tokenized digital securities and up to $5 trillion of central bank digital currency (CBDC) could be in circulation in the world’s major economies, half of which could be linked to distributed ledger technology.
Kathleen Boyle, executive editor of Citi GPS, said that while the potential for tokenization via blockchain technology has been touted for some time, it is not yet at the point of mass adoption.
Boyle said that while innovation takes time, it is approaching an important milestone and that the promised potential of blockchain could soon be realized.
Boyle said they think mass adoption will take between six and eight years. He also underlined that the interest of governments, large institutions and companies in the sector had a positive effect on adoption.
Larry Fink from BlackRock made similar statements recently. In his annual letter to shareholders, Fink highlighted the potential of blockchain technology and the exciting applications it has.
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