Citigroup Is Testing Its Own Bitcoin: 'Citicoin'

[Jordan23]

The day has come: Banks can’t ignore Bitcoin anymore. Not even the biggest of the big.

First up is Citigroup, the New York City-based global banking giant recently revealed to the International Business Times that it is developing its own version of Bitcoin. Predictably branded ‘Citicoin,’ the virtual currency was coded by Citigroup’s research and design arm, Citi Innovation. Still in the early testing phase, a patent has not been filed for the mainly open-source cryptocurrency, which is based off of Bitcoin and its core blockchain ledger technology, a chronological public ledger of all Bitcoin transactions that have ever taken place. This approach will allow for less complicated and less costly cross-border payments and other transactions.   

Citigroup, which has eyed distributed ledger tech over “the last few years,” also admitted to the Times that it has developed three internal blockchains to test its fledgling digital coins on.

While the company’s inaugural foray into virtual currency is promising -- and certainly a pioneering move within the traditional financial services industry -- it’s still a ways away from being the real deal.

“They [Citigroup’s blockchains] are all within the labs just now, so there is no real money passing through these systems yet,” Ken Moore, head of Citi Innovation Labs, told the Times. “They are at a pre-production level, to be clear.”

So far, the focus of Citigroup’s digital currency system has been on cross-border payments, with trade likely up next, Moore said.

He described Citicoin, as “an equivalent to Bitcoin,” and said it’s “up and running” within company labs in an effort to give Citigroup a head start. “It’s in the labs, but it’s to make sure we are at the leading edge of this technology and that we can exploit the opportunities within it.”

Citigroup has thrown down the virtual gauntlet. Which big bank is up next?


http://www.entrepreneur.com/article/248125

[jeannemadrigal2]

Now this is interesting.  I would never think a bank would do this.  They make too much from wire transfers and other things.  I wonder what their angle is?  Maybe there will be something shady about the coin, like a pre mine or something.  But the god thing is that they have lots of customers, and if those customers are exposed to a crypto, then we have more people using cryptos overnight.  This will be good for us I think, and bitcoin will grow in to the monster we all know it is.

[erpbridge]

I don't think bitcoin or the banking world would be real excited about it, as its just another altcoin. However since its a bank and has customers might be the reason it might become big. I don't really see the advantage of having a centralized currency accepted by the people, and this is probably just going to be only for one bank.

[bananas]

Their intention is just to move money fast overseas in a private network owned by the bank, it is no competition to bitcoin. It is just the blockchain tech being used to make the current banking system more efficient.

[ransomer]

To me... the blockchain innovation is an almost certain winner..

The doubts imo is not about the blockchain, but whether bitcoin or some other use of the same innovation will be the winner - because as the Winklevos twins said recently.. "it's probably a winner takes all market". Just like Facebook, Google etc.. when the dust settles there is likely one clear winner.

So now the question is... will that now be Citicoin rather than bitcoin?

[nicked]

I think that the Bitcoin network is far too big for "shiticoin" to compete with it.

[yayayo]

"Citicoin" - what a joke. That sounds like just another altcoin to be used only in cities (someone should create clone-fork it).

Apparently banks don't want to use Bitcoin, because they can't control it. I'm sure this and similar initiatives won't last. They will be outrun by more innovative open-source approaches that run on the Bitcoin blockchain. Banks will come to a painful realization: They can't lead anymore, they'll have to follow (Bitcoin).

The age of traditional banks is coming to an end.

ya.ya.yo!

[runpaint]

Stupid and pointless.  If they're going to let us mine it, then it's just another altcoin.  If they're going to run a blockchain with no mining, then it's just their own internal computer system and not a cryptocurrency.  Maybe they're trying to implement it as an automated system so they can fire a few thousand people.

[countryfree]

I'm urgently asking all bitcoiners to boycott this altcoin. BTC is quite good, it may evolve, it may even be replaced in the future, but the last thing we want is a cryoptocurrency managed by a bank! What's the point? BTC has been invented to bypass, to ignore banks, we shall refuse any coin which would bring them back at the top of the game.

[fancy_pants]

Maybe they're trying to implement it as an automated system so they can fire a few thousand people.

of course this,  like they even have a choice!

[galbros]

Stupid and pointless.  If they're going to let us mine it, then it's just another altcoin.  If they're going to run a blockchain with no mining, then it's just their own internal computer system and not a cryptocurrency.  Maybe they're trying to implement it as an automated system so they can fire a few thousand people.

I like the internal computer system idea.  I don't think they seriously want to start an alternate coin.  There have been an increasing number of articles on coindesk about the blockchain technology, it looks like Citi is taking its potential seriously.  I'm not sure this is good for bitcoin though.

[jbrnt]

I don't think bitcoin or the banking world would be real excited about it, as its just another altcoin. However since its a bank and has customers might be the reason it might become big. I don't really see the advantage of having a centralized currency accepted by the people, and this is probably just going to be only for one bank.

Yes, they are making internal blockchains with citicoin running on them. It's an interbank system not open to public. I think their so called citicoin doesn't hold any value, it's just a token to enter smart contracts with citibank. It will be interesting to see how they tackle the problems. It will be so diferent to bitcoin where bitcoin holds the value.

[Jordan23]

Stupid and pointless.  If they're going to let us mine it, then it's just another altcoin.  If they're going to run a blockchain with no mining, then it's just their own internal computer system and not a cryptocurrency.  Maybe they're trying to implement it as an automated system so they can fire a few thousand people.

Great discussion so far everyone. I 100% agree with Runpaint here. I find it mildly interesting but no threat to Bitcoin, at all.

[Jordan23]

Can someone explain "mainly open source" that's referenced in the article?

[runpaint]

It doesn't matter how much money they save or how many employees they lay off, they still won't charge smaller fees to their customers. 

Kind of like how the plastic water bottles now use 50% less plastic "to save the environment", but the price is still the same even though they've reduced their material costs by 50%.

[jbrnt]

Too many people's thinking are limited by how bitcoin works. Citibank is a fiat bank, they do not need a digital coin, they want to use the blockchain in a different way. The open ledger and smart contracts are the features which are useful to large banks.

I think they are using the blockchain as a timestamped, verifable, contract system between global banks. The coin may be minable by the public but they will be useless to us, because we aren't banks.

Citibank coin is not a competitor to bitcoin. I think it is going to raise awareness of the "blockchain" buzzword, more people will be more comfortable using a crypto.

[jeffthebaker]

Citibank is premining their own coin and will issue them out as they see fit. Citicoin does not represent the principles that crypto currency represents, there is no way that the project will be successful.

[notbatman]

Will City Wok be accepting Citycoin?

[philipma1957]

Citibank = ($1,231,154,000,000)

http://www.moneyeconomics.com/top-10-by-total-asset-citibank/

this was my source for  above.


Bitcoin =      ($3,819,228,000) 

 http://www.bitcoincharts.com/

I did 14.358 mill coins x 266 usd



So Citibank has  322x the value  Of BTC


Plain and simple they can crush BTC if they want to, my gut tell me  it could be a very rough time for Crypto Coins  if banks adapt  the tech and attack the coins with a winner take all strategy .

[Frost]

I goes nobody will be interested in this coin.