Bitcoin is at a tipping point and could become ‘currency of choice’ for global trade, Citi says

Bitcoin is at a tipping point and could become ‘currency of choice’ for global trade, Citi says

Citi thinks bitcoin is at a "tipping point" and could one day "become the currency of choice for international trade" as firms like Tesla and PayPal warm to it and central banks explore issuing their own digital currencies.

"There are a host of risks and obstacles that stand in the way of Bitcoin progress," the U.S. investment bank's global perspectives and solutions team wrote in a note Monday.

"Bitcoin's future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion."

It marks a change in tone for major financial institutions on bitcoin. Many banks have historically shunned the digital asset, arguing it has no intrinsic value and the hype surrounding it is akin to the tulip mania of the 17th century.

But bitcoin's wild ascent over the last few months has forced big Wall Street players to reevaluate the cryptocurrency. BNY Mellon, the oldest bank in the U.S., last month said it would offer custody services for bitcoin and other digital currencies. Meanwhile, JPMorgan has said it's looking seriously as bitcoin.

Bitcoin and other cryptocurrencies are often subject to wild bouts of volatility. Just over