Updated 27 Apr, 2021

Goldman Sachs CEO David Solomon Remains Focused on Bitcoin

david solomon

 

Key Takeaways:

  • David Solomon keeps a close eye on Bitcoin and cryptocurrencies
  • The CEO shares his thoughts on Bitcoin in an earnings call

David Solomon keeps track of Bitcoin and other cryptos

Goldman Sachs remains focused on its goal to track Bitcoin’s progress and the overall crypto market developments. As the rise of cryptos continues to be one of the hottest topics on Wall Street, Goldman Sachs CEO, David Solomon did not forget to comment on it in in the bank’s latest earnings call.

Goldman’s CEO David Solomon touched upon both bitcoin and the emerging central bank digital currencies (CBDC). Mr. Solomon highlighted that the bank’s clients are interested to own bitcoin. However, the crypto space first needs to go through clear regulations so that investment banks could act as principals with crypto. “Of course, we need to operate within the current regulatory guidelines,” David Solomon mentioned. “For example, we cannot own Bitcoin or trade it as a principal.” The investment firm, managing over $2.1tn in assets, has been keen to get involved in the cryptocurrency industry since 2017. Back then, the bank attempted to start a crypto trading desk, but abandoned the project. Around the end of the first quarter this year, however, the bank restarted its crypto trading desk for its clients.

What did the CEO  say about the effect of cryptos on the world economy?

“As activities in these areas progress, there will be significant disruption and change in the way money moves around the world,” the CEO said in the call. “There is also significant focus on cryptocurrencies like Bitcoin, where the trajectory is less clear as market participants evaluate their possibility as a store of value,” he added.

On the topic of digitalized sovereign currencies, Goldman’s CEO mentioned that central banks around the world are exploring the field. They are doing so with the intention to figure out the “longer term impact on global payment systems.”

The Wall Street mainstay looks eager to dive into cryptos even before clear-cut regulations arrive. On that note, Goldman Sachs plans to offer Bitcoin-related products to its wealthy clients who have at least $25 million held by the bank.