The Goldman Sachs investment bank is one of the traditional financial companies that have embraced the idea of digital currencies. So much so that its CEO Lloyd Blankfein believes that it would be a huge mistake to think that cryptocurrencies will fail.
Blankfein has also criticized analysts who believe that there is no future for cryptocurrencies such as Bitcoin (BTC). The Goldman Sachs CEO’s positive approach towards the cryptocurrency market is based on observations made in the market including currently ongoing developments. Lloyd is however not convinced that the cryptocurrency market has developed into a major asset class.
The Goldman Sachs CEO believes that the cryptocurrency market and blockchain technology are still in their early stages of development and as a result, they have a lot of potential. He has also urged investors and critics to think of digital currencies as an emerging market class and a representation of the potential achievements that are yet to come.
“If you go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency?”stated Blankfein during a conference held by the Economic Club of New York.
Blankfein also believes that Bitcoin will eventually become the next stage in the natural progression from fiat currency in the same way that fiat currency was the natural progression from the use of gold as an exchange of value. Such a transition will most likely take time before it happens especially since there are a lot of issues with blockchain technology that currently need to be addressed. The good thing is that developers are hard at work trying to perfect the technology.
Pursuing more opportunities in crypto in readiness for the future
Meanwhile, Goldman Sachs has been pursuing the opportunities in the cryptocurrency market through derivatives such as futures trading, especially for futures trading. Goldman Sachs COO David Solomon, however, revealed that the financial institution is looking to pursue more opportunities by expanding the cryptocurrency-related offerings. The company is reportedly planning to pursue other options in the crypto market as part of its plan to adapt to the changes being brought about by cryptocurrencies.
The positive remarks about the future of cryptocurrencies, such as Bitcoin by Goldman Sachs executive marks significant milestone considering that the same company did not have such positive views just four years ago. In 2014, the financial institution stated that Bitcoin did not qualify as a currency. Fast forward to the present and the same firm is highly optimistic about Bitcoin replacing fiat currency.