Goldman Sachs Group Inc., a well-known American multinational finance company that engages in global investment banking, management, securities, and other financial services, is contemplating a trading operation dedicated to Bitcoin and other cryptocurrencies, which would make them the first blue-chip Wall Street firm preparing to deal directly in the crypto market.
Goldman Sachs is processing a big change and only time can tell if they will jump onto the crypto market, but Goldman Sachs’ curiosity may lead to a bitcoin boost and light the controversial debate around cryptocurrencies which were, at the start, viewed as safe havens for dodgy and even criminal activities.
Goldman Sachs is trying to obtain a specialized team of institutional investors wagering on Bitcoin. Being constantly updated of the day-to-day cryptocurrency market could also position GS to capitalize on further improvements of this market. In the announcement, a Goldman spokeswoman stated:
“In response to client interest in digital currencies, we are exploring how best to serve them in this space”
Goldman Sachs’ cryptocurrency plan involves:
2)Bank’s strategic investment group.
From the known facts, we can expect GS to look at bitcoin’s future as a payment method rather than a store of value, similar to gold. Last year through June, Goldman Sachs, revenue dropped 21%, dragged by poor performance in commodities and currencies so it’s no wonder that the financial giant is now looking to get a slice of the Bitcoin pizza.
The news comes at a time when prominent figures in the financial space are taking shots at Bitcoin, in what seems to be an attempt to discredit it as an alternative and global currency. These figures include JP Morgan’s Jamie Dimon, who claimed Bitcoin was “worth nothing” as well as the vice-president of the European Central Bank (ECB) Vitor Constancio who claimed that Bitcoin is “certainly not a currency”.
Goldman Sachs’ Lloyd Blankfein is “still thinking”
Goldman Sachs exploring the cryptocurrency world will make it the first blue-chip Wall Street firm to deal directly in the growing yet controversial cryptocurrency market, a move that contradicts the recent “anti-bitcoin” stance taken by relevant figures in the financial sector.
Recently we have seen European Central Bank Vice President, Vitor Constancio, expressing his opinion about BTC “Bitcoin is a sort of tulip” Constancio said at an ECB conference:
“It’s an instrument of speculation … but certainly not a currency and we don’t see it as a threat to central bank policy.”
Another personality, Jamie Dimon, CEO of JP Morgan, stated:
“I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.”
On the other side, however, Lloyd Blankfein, Goldman Sachs CEO, has not shared this opinion. He recently tweeted:
“Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.”
Lloyd’s statement does not show any signs of acceptance, however is a clear sign of interest and knowledge as he refers to the time when paper money displaced gold, indicating that there are similarities between the current crypto landscape and the replacement of gold by physical money.