Goldman Sachs Sees Potential In Stable Cryptocurrencies

Writer aniane By Amadou Niane 2 weeks, 2 days ago

Goldman Sachs Sees Potential In Stable Cryptocurrencies

In an interview, David Solomon, the new CEO of Goldman Sachs, said the bank was conducting research on the "tokenization concept", the creation of stable digital coins backed by fiat currencies.

During an interview with Les Echos, Salomon, who was appointed CEO of Goldman Sachs last summer, revealed that the financial institution was very involved and relied heavily on the concept of tokenization.

"We are doing extensive research on the concept of tokenization, the potential of which we believe, and which designates creation through the blockchain of a stable digital currency based on a basket of real currencies that moves money to across borders and without friction, "he said.

According to Solomon, the global payment system will move in this direction in the future, but it is still impossible to know which actors will prevail.

"Assume that all major financial institutions around the world are looking at the potential of tokenization, the stable wedge, and friction-free payments," he added.

Regarding Libra, Facebook's future stable cryptocurrency, Solomon said he found the project interesting, without giving more details, saying he could not comment on "any discussions" that GS might have had with his clients.

Solomon concluded by explaining that regulation should evolve and regulators closely monitor this new industry. In addition, he does not think the banks will disappear but they will have to adapt to survive.

Following the departure of Lloyd C. Blankfein, Salomon took the reins of the investment bank of New York. Younger (56 years old), the new boss of GS would be more focused on cryptocurrencies than his predecessor.

In 2018, several sources claimed that Goldman Sachs was developing trading and custody solutions for Bitcoin. Last fall, Goldman Sachs' CFO, Martin Chavez, confirmed that the bank was working on a type of derivative for Bitcoin because its clients were plaintiffs.