The Bank of the Future

Citi GPS: Global Perspectives & Solutions March 2018 © 2018 Citigroup 90 Figure 82. Market Cap. Comparison of BigTech Companies vs. Cryptocurrencies Figure 83. Number of Blockchain VC Fundings and Dollars Raised Source: Reuters, CoinDance, Citi Research; Price data as of 13 Mar. 2018 Source: CB Insights, Citi Research 2017: The Year of Crypto Cryptocurrencies truly took-off in 2017 with growing general public and media interest, clearly evidenced by the sharp rise in Google searches for the term 'Bitcoin'. Interest was highest in emerging / frontier markets, including several in Sub-Saharan Africa, as well as in developed markets such as Singapore. One pillar for the popularity of bitcoin is its anonymity. The informal sector has therefore been both a significant user and an early adopter of Bitcoin. As with Google search data, Bitcoin trading volume shows some evidence that the larger the informal economy for a country, the larger is its market share in bitcoin trading. Figure 84. Google Search Result Trends Globally for the term "Bitcoin” Figure 85. Top 30 Regions With Highest Google Search Result Trends for the Term "Bitcoin” Source: Google Trends, Citi Research Source: Google Trends, Citi Research During 2017, several cryptocurrency prices rose dramatically – Bitcoins were up 14x, Ethereum 100x, Ripple XRP 350x, and Litecoin 50x. The rapid increase has been driven by: (1) increased retail investor interest in Asian countries such as Japan and South Korea and also in the U.S.; (2) general media interest including emerging markets (see Google search trends); (3) increasing institutional investor and private bank client interest, including the launch of CME/CBOE futures on Bitcoins; and (4) technical factors, such as delayed forks. $810 $537 $429 $186 $81 $37 Google Facebook CryptoCoins Total Bitcoin Ethereum Ripple (Figures in US$ billions) $99 m $357 m $506 m $537 m $831 m 50 139 153 125 188 2013 2014 2015 2016 2017 (ann) Funding ($m) Number of Deals Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 Google search trend data for the term "Bitcoin" globally 0 10 20 30 40 50 60 70 80 90 100 Nigeria South Africa Ghana Singapore Slovenia Netherlands Australia Estonia Austria Canada Norway US Switzerland Czechia New Zealand Malaysia Ireland UAE Latvia India Philippines Sweden Hong Kong Pakistan Finland Kenya UK Germany Lithuania Denmark Emerging / Frontier Markets Developed Markets Google search trend data for the term "Bitcoin" across regions