Citi won't launch JPM Coin competitor; opts for supporting existing solutions

Citigroup has binned the idea of launching a Citicoin token, CoinDesk writes. The bank discussed the idea for a bank-backed token back in 2015. Ultimately, it decided that other technologies provide more effective and efficient solutions, and never went through with the idea—it had neither announced the Citicoin token idea formally nor showed a proof of concept.

Citicoin was supposed to enable easier cross-border transfers. Following the Citicoin experiment, however, the bank decided to leverage existent payment ecosystems, explained Citi global head of innovation for treasury and trade solutions Gulru Atak.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The bank is opting for fintech solutions and methods that can be implemented faster. “We are trying to make those changes today, rather than just putting all our efforts into future technology,” Atak said, noting introducing blockchain-enabled technology would require banks all over the world to adopt the technology; on the other hand, many financial institutions have already on-boarded SWIFT.

Nevertheless, Citi has not abandoned blockchain altogether. CitiConnect was created to enable the integration of clients' blockchain-enabled systems, Atak said.