Perspectives 2019 2020 Public Sector

Citi Perspectives 11 Definitions Table Cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. Fiat currency is government-issued currency that is not backed by a commodity such as gold. Fiat money gives governments’ central banks greater control over the economy because they control how much currency is printed. Initial Coin Offering (ICO) is the cryptocurrency space’s rough equivalent to an Initial Public Offering (IPO) in the mainstream investment world. ICOs act as fundraisers of sorts; a company looking to create a new coin, app, or service launches an ICO. Central Bank Digital Currency (CBDC) represents the digital form a fiat currency of a particular nation (or region), and is issued and regulated by the competent monetary authority of the country. Central bank digital currency is different from digital currency (or virtual currency and cryptocurrency), which are not issued by the state and lack the legal tender status declared by the government. Stablecoin refers to a new class of cryptocurrencies which offer price stability and/or are backed by reserve asset(s). Stablecoins have gained traction as they attempt to offer the best of both world’s — the instant processing and security of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies Dustin Ling Public Sector Banking, Global Development Organizations, Citi Tony McLaughlin Emerging Payments and Business Development Treasury & Trade Solutions, Citi