For blockchain technology to reach widespread adoption, governments must begin issuing their own cryptocurrencies. That's the situation as Morgan McKenney, the head of cash management at investment banking corporation Citi, sees it.

McKenney recently spoke with CoinDesk about cryptocurrencies, the CitiConnect project, and new digital marketplaces. In the interview, she asserted that a fiat currency backed by a blockchain would allow the technology to achieve its full potential by encouraging its use in everyday life.

"If you had a digital dollar, if you had a digital pound, exactly fungible with the note in your wallet and the dollar in your bank account, then you'd be willing to use that digital currency much more throughout your ongoing daily transactions," said McKenney.

Citi isn't just paying lip service to this new technology. The company has invested in several blockchain-focused companies and collaborated with Nasdaq and the blockchain startup Chain on their CitiConnect platform, which helps apply the advantages of a distributed ledger to traditional currency.

McKenney noted that the goal of the project is to provide a "bridge to the blockchain horizon," and according to her, the project would be "supercharged" if governments were to issue fiat money on a blockchain.

Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.


Share This Article