wordpress blog stats
Connect with us

Hi, what are you looking for?

Citibank testing cryptocurrency as a digital payment platform


Citibank is running a test platform for digital currencies and is planning its own solutions called CitiCoin, reports IBTimes UK. The bank claims to have already constructed three blockchains and a test currency to run across them. These systems are still in the test phases with no real money passing through them.

A blockchain is essentially just a database that maintains the public ledger of transactions for cryptocurrencies, in this case Citicoin. Blockchains are distributed in different locations with each carrying the ledger of transactions, which are then matched to verify if a transaction took place or not. The large number of nodes provide redundancy in case of certain nodes being offline, or having been compromised or hacked.

In Citibank’s case however, it’s unlikely the bank will maintain a public ledger, instead favoring to maintain these servers itself. Interestingly, the bank mentions it is in talks with governments and regulators for the potential of a global blockchain distributed ledger network. If eventually implemented, even only by Citibank, the platform should simplify cross border payments and enable it to transact with smaller local banks without risking or requiring cash collateral.

Citibank mentions that the technology behind Citicoin is not patented and will remain open source. Other than this, the bank mentions that it is currently working on digitising payments and transactions across five domains of which blockchain is only one. However, the bank did not reveal these other ‘domains’.

Cryptocurrency in India: Last year, RBI had announced that it did not intend to regulate virtual currencies in India. Around the same time RBI governor Raghuram Rajan raised questions about the stability of Bitcoin prices. Additionally, the Income Tax department has taken no official stance on the matter, although members in the Indian Bitcoin community were told to pay taxes on the Bitcoin they mined, based on its valuation on the day it was mined.

Advertisement. Scroll to continue reading.

In January last year, a notice was sent to the RBI seeking clarification on various aspects around Bitcoin. RBI was asked if it plans to treat virtual currency – as a foreign currency, domestic currency, private currency, commodity, software program or as an electronic document. It was also asked if RBI has the power to regulate virtual currencies and if so, under what law.

Image source: Flickr user BTC Keychain

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.


Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.


Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.


The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.


For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ