Financial Times criticises Citibank report on Bitcoin prospects

Financial Times journalists назвали “truly shocking” the latest Citibank study on Bitcoin. The publication’s representatives questioned whether the first cryptocurrency could realistically serve as a medium of exchange in international trade, as the investment bank’s analysts suggested.

In the Financial Times, the accuracy of the data used in the report was questioned. In particular, they were surprised by the 36% figure—the share of small and medium-sized businesses in the United States that accept digital gold as a means of payment.

Citibank used 99bitcoins.com as a source. In FT’s view, it hardly deserves trust, although the researchers described the data as ‘too optimistic’.

Journalists were also perplexed by Citibank’s stance regarding the litigation over the $850 million loss between the New York Attorney General’s office, the issuer of the stablecoin Tether (USDT) and the associated Bitcoin exchange Bitfinex.

Analysts cited risks that could undermine confidence in Bitcoin. Among them are a widespread blockchain outage, a large-scale cryptocurrency theft, or intensified regulatory scrutiny in light of the suggestions that one of the largest stablecoins is not fully backed by dollars.

The FT questioned whether the authors of the study examined the terms of an agreement obliging Bitfinex and Tether to pay $18.5 million to the state of New York. The prosecutor’s office said the companies concealed financial losses and misrepresented statements of full backing of USDT. Journalists noted that Citibank included ‘data from the internet’ in the study and ignored those facts.

Earlier, Citibank researchers warned of a turning point in Bitcoin’s history — it could either become a medium of exchange in international trade or endure a speculative boom.

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