Citigroup CEO: Bitcoin Threat Will Give Rise to State Cryptocurrencies

Citigroup CEO Michael Corbat has predicted that state-sponsored digital currencies will arise from the threat posed by bitcoin.

In an interview with Bloomberg at a summit in New York yesterday, Corbat said that cryptocurrencies represent a "real enough threat" to the financial system, and that governments wont take the disruption of their capabilities around data, tax collection, money laundering and know-your-customer (KYC) "lightly."

He continued:

"It's likely that we’re going to see governments introduce, not cryptocurrencies – I think cryptocurrency is a bad moniker for that – but a digital currency."