The industry-leading Citi Banks “Money, Tokens, and Games: Blockchain’s Next Billion Users and Trillions in Value” report states “CBDCs could have at least 2 billion users and over $5 trillion in circulation by 2030 and a half could be using partly distributed ledger-linked (DLT) models.”
The bank claims that Crypto’s mass adoption should be driven by decentralized digital identities, zero-knowledge proofs, Oracles, and secure bridges.
According to Henri Arslanian, co-founder of Nineblocks, the terrible circumstances surrounding the 2022 crypto crash and the accompanying concerns in the digital asset market are only likely to hasten CBDC development.
By 2030, Citi predicts that there will be $4 trillion to $5 trillion worth of tokenized digital securities, with 1% of corporate and quasi-sovereign bonds, 7.5% of real estate funds, 10% of PE/VC funds, and 2% of repo, securities financing, and collateral markets being tokenized.
Citi noted down the dangers of CBDCs as “Central Banks Competing with Private Players, Loss of Privacy, Loss of Bank Deposits, and Limited Uptake.”
The company even shared its case studies on the digital euro, digital rupee, digital pound, and digital dollar in its report.
In the same recent report, Citibank claims that the tokenization of financial and real-estate assets may be the “killer use case” that propels blockchain innovation. By 2030, tokenization is predicted to increase by an 80x factor in private markets and reach a value of up to $4 trillion.
Citi added that “the end state is a vision of a digitally native financial asset infrastructure, globally accessible, operating 24x7x365 and optimized with the smart contract and DLT-enabled automation capabilities, which enable use cases impractical with traditional infrastructure.”
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