"Bye Bye" to Bitcoin? Robert Kiyosaki Weighs In on Citibank's Citi Token Services Photo by Kanchanara on Unsplash
On Tuesday, renowned author and financial literacy advocate, Robert Kiyosaki, sparked off a spirited debate in the cryptocurrency sphere with his remarks on the future of Bitcoin and the US dollar.
The author, famed for his best-selling book “Rich Dad Poor Dad,” shared his thoughts on the social media platform X, in response to Citibank’s recent venture into blockchain technology.
Citibank Steps into Blockchain
Citibank, a subsidiary of the global financial services corporation Citigroup Inc., unveiled its Citi Token Services on September 18. Citibank’s business solution will utilize blockchain technology to facilitate instant cross-border transactions by tokenizing customer deposits.
With the advent of Citi Token Services, Kiyosaki reflected on the potential ripple effects on Bitcoin and the US dollar.
“Citibank announced today it is offering bank blockchain technology to turn institutional savings into Citibank tokens which can be used for instantaneous 24/7 cross border transactions. Bye bye BC & US $?” he stated.
The decision by Citibank signifies a crucial leap towards advancing payment processing by incorporating smart contracts. By transforming customer deposits into digital tokens via a private blockchain, the bank will provide around-the-clock transaction banking services to its institutional clients.
Impact on Bitcoin and US Dollar
Kiyosaki’s question, hinting at the potential competition for Bitcoin, has caught the attention of industry experts. Some believe this development could be beneficial for the cryptocurrency, however.
Robert J. Salvador, the CEO of DigiBuild, noted that Citibank’s venture doesn’t necessarily pose a threat to Bitcoin. Instead, it might encourage wider adoption and use of cryptocurrencies.
Salvador maintained that the unique value proposition of Bitcoin remains untouched and it continues to be a swift and convenient mode of payment.
Kiyosaki’s views on Bitcoin have been clear and consistent. He perceives Bitcoin as “digital gold,” aligning it with its tangible counterparts, gold and silver. He has often emphasized the significance of these assets, dubbing Bitcoin the “people’s money,” while referring to gold and silver as “God’s money.”
Earlier in April, Kiyosaki even made a bold price prediction that Bitcoin would skyrocket to $100,000.
Disruption of Traditional Business Models and the Question of Legitimacy
As blockchain technology continues its trajectory toward mainstream acceptance, it brings along the potential to significantly disrupt traditional financial business models.
Intermediaries such as banks facilitate transactions, offer financial services, and act as gatekeepers of economic resources. The inherent design of blockchain technology allows for peer-to-peer transactions, however, and could drastically diminish the role of these intermediaries.
There’s also the question of legitimacy and trust. The adoption of blockchain technology by mainstream financial institutions such as Citigroup could lend an important degree of credibility to the technology and associated cryptocurrencies.
While Kiyosaki’s recent comments on Bitcoin and the US dollar have stirred a discussion, it also highlights the increasing interest and acceptance of blockchain technology by mainstream financial institutions.
As Citibank’s move signifies, the intersection of traditional banking and blockchain could potentially shape the future of finance. However, the impact of such developments on Bitcoin’s future is still uncertain.