According to Goldman Sachs, there is a constant evolution in the BTC narrative as a digital store of value. The bank highlights that Latin America has at least 7% of the global adoption of digital assets.

The US investment bank Goldman Sachs assumed Bitcoin (BTC) as a valuable asset and medium of exchange. The financial entity separated the digital asset from the other items in the market, giving it a rating of pure cryptocurrency, unique and without equal.

In its ‘Overview of Digital Assets’ report, the bank points out that Bitcoin has become a tool right now. According to the entity, there is a constant evolution in the BTC narrative as a digital store of value driven by scarcity, security, and brand equity.

According to the institution, BTC is useful in countries with unstable currencies, such as Venezuela or Argentina, where adoption runs parallel with crescent inflation. In addition, he claims that there has been a greater acceptance of the currency as collateral for financial transactions.

For them, it is “unlikely” that Bitcoin will be used for commerce and payments, as its characteristic volatility “makes it less suitable as a medium of exchange.” However, countries like El Salvador already consider it legal tender, and it gets used for everyday payments.

Utility Tokens and Other Applications

After Goldman Sachs, currencies like ether, Binance Coin (BNB), centralized exchange Binance’s cryptocurrency, and Filecoin also were listed as utility tokens.

This situation means that they use blockchains to facilitate additional services, such as smart contracts, exchange discounts, identity verification, and distributed storage.

BUSD, USD Coin, Dai, Paxos, Tether, Celo, and Gemini Dollar got indicated by Goldman Sachs. These assets facilitate global payments using blockchains, with fewer costs for payments and transfers.

The financial body also gave a spot to non-fungible tokens (NFT), a technology that grew exponentially during 2021, especially in the arm of play-to-earn games, such as Axie Infinity.

On these lines, the entity placed Decentraland, the metaverse where the NFTs have had presence is a first taste of the Web3, which is currently in development.

According to Goldman Sachs, NFTs are a single, tradable digital asset that displays digital ownership of an asset, leveraging open source and decentralized blockchain to “enforce authenticity and proof of ownership.”

In the last line, various financial infrastructures and various subjects related to their applications got mentioned. Among these infrastructures, Goldman Sachs highlights Coinbase, an exchange with a presence in The US.

In this line, related parties apply blockchains to create opportunities to digitize capital markets, such as securities, custody, or brokerages. This situation comes in addition to storing historical data, ensuring the origin of the goods.

Latin America, 7% Global Adoption

On the other hand, the data from Goldman Sachs revealed that Latin America represents 7% of the total global adoption of digital assets, only surpassing Africa (2%) and the Middle East (5%).

According to the financial body, East Asia is the area that represents the most adoption, with 31%, while Central and South Asia, together with Oceania, account for 12% of global adoption. Northern and Western Europe have 17% adoption, while Eastern Europe reaches 12%. On the other hand, North America has at least 15% of global digital asset adoption.

By: Jenson Rivas

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