Everyone is Launching a Crypto; Goldman Sachs May Be Next

Wilfred Michael 

Wilfred Michael

News reporter

28 June 2019,
21:00
Everyone is Launching a Crypto; Goldman Sachs May Be Next

Facebook recently announced the release of its Libra cryptocurrency last week. JP Morgan Chase Bank released theirs in February.

Now, Goldman Sachs, the fifth largest bank in the United States has joined the queue of companies likely to launch a cryptocurrency. 

In fact, given the nature of recent comments made by CEO, David Solomon, it may not be wrong to conclude that the bank is already doing some underground work on launching its cryptocurrency.

David Solomon shared his and perhaps Goldman Sachs stance on the growing use case for cryptocurrencies in an interview with French news publication, Les Echos.

According to the CEO, global payments are indeed heading towards the use of stablecoins — cryptocurrencies whose value is tied to a fiat currency or a basket of assets with a stable value. He described the concept behind Facebook's Libra as 'interesting' before responding to questions regarding whether his bank would follow the steps of JP Morgan by releasing a cryptocurrency.

Instead of answering for himself, Solomon hinted at Goldman Sachs crypto plans, saying it would be better to “assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins, and frictionless payments.”

He, however, asserted that the advent of these tools would not force banks to close shop. 

Instead, he predicted that these institutions would have to innovate to remain competitive, albeit he also added that tech giants like Facebook would have to collaborate with the banks to avoid the regulatory challenges they're currently facing.

Finally, the Goldman Sachs boss while shedding more light on the current regulatory woes of the crypto community suggested that eventually, regulations would change to accommodate virtual currencies.

 

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