US banking giant Citigroup says mass adoption is 6-8 years away, according to lender’s latest blockchain, central bank digital currency (CBDC) and financial, gaming, and real-world assets We believe it will be driven by the tokenization of report.
Citi compared blockchain innovation to early gas cars and digital cameras, saying the world typically doesn’t recognize the value and benefits of disruptive technology at first. This factor is exacerbated by the nature of blockchain, which, unlike cars and cameras, is a “backend infrastructure technology with no noticeable consumer interface.”
However, Citi believes that mass adoption of blockchain technology will occur in the near future as it begins to take hold in real-world use cases. Citi said:
“Adoption momentum is shifting positively as governments, large institutions, and businesses move from exploring the benefits of tokenization to trials and proofs of concept.”
The City’s Recipe for Mass Adoption
According to a research report, mass adoption will occur when more than 1 billion people use blockchain technology without knowing it.
Lenders believe this will most likely happen through a CBDC as more and more governments begin to introduce digital currencies into their economies. They are planning to issue or have already issued, and about 2 billion people will have access to digital currency in the next few years.
Citi said it expects CBDCs to reach a market capitalization of $5 trillion in major economies by 2030, with about 50% of them tied to distributed ledger technology.
Citi said the state-backed CBDC will allow people to interact and experiment with digital currencies in a relatively safe environment. This is good for the overall adoption of blockchain technology even though most central banks do not use it for their CBDCs.
Social media payments and games
Beyond CBDC, Citi said that blockchain-based social media payments and tokenization of gaming assets will play a key role in facilitating the adoption of blockchain technology by the general public.
Nearly all social media platforms are now in the process of enabling digital payments, and some such as Telegram and WhatsApp have made considerable progress.
Telegram recently launched blockchain-based payments for USDT, allowing users to send and receive stablecoins via messages. The app has been an avid proponent of cryptocurrencies and blockchain payments almost from the beginning.
Meanwhile, tokenization of in-game assets is expected to drive adoption among over 3 billion gamers worldwide. However, reports say web3 games need to be just as good as non-web3 games for this to happen.
Citi said gamers don’t care about the technology used in their game, only the quality of the game, and will easily switch to their favorite web3 equivalent if there is one. Lenders noted that even if only a fraction of the gaming community adopts blockchain-based games, it would lead to a significant increase in adoption.
“Today, there are over 3 billion gamers worldwide, and by 2025, games with Web3 or blockchain elements could be adopted by nearly 50 to 100 million people.”
Additionally, lenders believe the tokenization of financial and physical work assets is expected to grow 80-fold in the private market over the next few years and could be a key driver of mass adoption. increase.