Regarding this issue, the company said that it must act in compliance with current regulatory guidelines. Central banks are also working to apply this technology to local markets.
The pioneering cryptocurrency “is important for the future of global financial systems,” stated David Solomon, President, and CEO of Goldman Sachs. It is important to remember that the company had revenues that reached around USD 44 billion during 2020.
In a working session, the CEO said that there will be great advances in the areas of Bitcoin, blockchain, and digitization of money. The manager anticipates that, as that happens, there will be a significant change in the way money moves globally.
The executive explained that many central banks are examining digital currencies and working to apply this technology to local markets. With this, they seek to determine what the impact could be on global payment systems in the long term.
Solomon clarified that there is also a growing interest in cryptocurrencies, which market participants evaluate as a store of value. In this sense, Goldman Sachs believes that it must act within the framework of current regulatory guidelines. The CEO of the American investment group mentioned that the firm cannot own or transact with Bitcoin.
Heather Kennedy Miner, Head of Investor Relations, and Stephen M. Scherr, Chief Financial Officer, also participated in that discussion.
Banks Take an Increasingly Favorable Position on Bitcoin
At the beginning of this year, Goldman Sachs Senior President Lloyd Blankfein highlighted the success in popularity that Bitcoin has achieved. He highlighted that the growing interest in the main cryptocurrency on the market complicates the situation for regulators.
The executive has been with the company since 1981 and has held different positions. Jokingly, he said that “regulators must be hyperventilating due to the success of Bitcoin.”
The financial group, whose headquarters is in New York, recently began offering Bitcoin to its wealth managers. The new Global Head of Digital Assets for the Private Wealth Management Division, Mary Rich, acknowledged the high demand for Bitcoin. She noted that this has led this financial institution, among others, to tip its balance towards the cryptocurrency.
Many users “are considering this asset as a hedge against inflation.” Also, “last year’s macro context has certainly played a role in that,” Rich said.
Other banks have also taken an increasingly favorable position on Bitcoin. Among them are Morgan Stanley and the New York Digital Investment Group (NYDIG). They applied to the US Securities and Exchange Commission (SEC) for permission to manage a Bitcoin exchange-traded fund (ETF).
At the time of writing this article, the price of Bitcoin is around USD 61,000. Its price decreased by 1.77% in the last 24 hours. Its trading volume in the last 24 hours is around USD 80 billion.
The relevance that Bitcoin and other cryptocurrencies have gained in the world economy has led financial institutions to take them more seriously. In addition to that, many central banks are working on creating digital versions of the fiat currencies of their respective countries.
By Alexander Salazar