Cryptocurrency Is Completely Changing The Entire Payment System

A new Citibank report reveals that cryptocurrency is changing the payment infrastructure. The report stated that digital assets are no longer an “internet novelty”, but a multi-trillion-dollar market.

What Institutions Can Do to Adopt Crypto?

This report provides a guideline for companies considering cryptocurrency payments, or investing in these assets as a store-of-value. It also highlights three important aspects that they should consider.

  • The right tools should be available to the accounting team for dealing with cryptocurrency
  • Choose which digital assets you will accept as payment
  • What about whether the company will include crypto in its balance sheet?

Cryptocurrencies are no longer an obscure internet novelty. They now have a market capitalization of two trillion dollars.” Citi’s report states that cryptocurrency will disrupt the current payment system, regardless of whether or not it does. It has also sparked new thinking about payment infrastructure, processing and accounting. In addition, it is becoming a store-of-value.

Adopting Crypto has its Difficulties

Citi offers two options for receiving cryptocurrency payments. The Agent Model allows you to find a third party that can collect and hold your digital assets. Another way is the Direct model. This allows organizations to control and hold their private keys using their own wallets.

However, managing price volatility is one of the most difficult challenges institutions face.

An organization will likely want to convert the price of crypto to their currency when they accept it. The price is then adjusted in crypto, rather than fiat currency. This provides an organizational tool for managing price risk. However, the real price risk lies with the crypto remitter. This is usually an organization’s customer or client.

The latest report from Citibank analysts. In March, the division published a 100-page report called “Bitcoin at the Tipping point” in which it noted that Bitcoin could be the currency of choice for international trading. This was due to the huge interest in the crypto market from financial institutions.

Citigroup, Citibank’s parent company, is still waiting for regulatory approval to trade BTC Futures.An anonymous source revealed that the multi-national giant wants to be granted regulatory approval to trade Bitcoin futures at the Chicago Mercantile Exchange.