Citi experts say asset tokenization could be the killer use case that will propel blockchain technology toward mass adoption by 2030.
A report published by Citi reiterates that blockchain will continue to play an important role in technological development in the next decade.
According to the report “Money, tokens and games: Blockchain's Next Billion Users and Trillions in Value”, published last week, blockchain technology is approaching a turning point that will mark a before and after in its development.
Citi experts estimate that mass adoption of blockchain could take between 6 and 8 years and that it will depend mainly on the ability to use this innovation in everyday life. In fact, the report points out that successful adoption of blockchain will come when more than a billion people can use it unnoticed, similar to what happens with the Internet and WiFi.
Blockchain, tokenization and CBDCs
Citi also notes that the tokenization of financial and real-value assets, as well as CBDCs, will drive technological breakthroughs and fuel interest in blockchain, further spurring mass adoption.
By the next decade, there could be $4-$5 trillion in tokenized assets, the report notes, all because blockchain has the capacity and potential to change the way assets are traded.
“Successful adoption will be when blockchain has more than a billion users who don’t even realize they are using the technology.”
Currently, many governments, corporations and large institutions have changed their perspective on blockchain technology in a positive way, starting to conduct in-depth research on its potential and carrying out various trials and proofs of concept to analyze all its advantages and benefits.
Regarding CBDCs, the digital currencies being designed by major central banks, Citi's report highlights that up to $5 trillion in digital currencies could circulate within the world's major economies over the next decade. According to Citi experts, half of this estimated value for CBDCs could be linked to blockchain technology and distributed ledger technology, or DLT.
In short, Citi highlights the ability of blockchain technology and cryptoassets to transform our environment, the way we live, work, spend, invest and interact. Thus, despite the controversy and debate that currently exists about the risks and benefits of these disruptive technologies, it is undeniable that these are emerging innovations with a very significant value proposition, the bank notes.
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