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Goldman Sachs CEO Says Denying Cryptocurrencies is Arrogant


There is an increasing number of firms at Wall Street that are changing their minds about the nascent digital economic system. The sentimentality towards opportunities in the cryptocurrency world seems to be changing. The CEO of Goldman Sachs shared his opinion on the world of cryptocurrencies.
In an interview with the Economic Club of New York recently, Lloyd Blankfein talked about his take on the emerging economy.
It’s Possibly the Next Evolution for Money
Blankfein showed up at the Economic Club of New York to present his opinion and answer questions related to cryptocurrencies. He was asked about the potentiality of the new economy and its potential to possibly replace fiat currencies.
The CEO of Goldman Sachs kept an open mind when he was answering these questions. He said that there is potential for cryptocurrencies to replace fiat currencies in the future. That is what fiat currencies did with the currencies backed by valuable commodities.
He views the emergence of cryptocurrencies as the next step in the evolution of money. For instance, consider gold. You use that as money, and you know people only accept hard currency as monetary payment. You start to make gold coins. The value of the gold coin would be 5 bucks if it has gold worth 5 bucks. Then comes a point where you are given a piece of paper. The parchment promises to hold the same value as the 5-buck gold. You can always hand in the paper and get $5 worth of gold when you redeem it. Later on there comes a point where you are given a paper which says that it is worth $5 in gold, but you can never redeem it for that quantity of gold. Eventually things come to a point where you are given a piece of paper. They say that it is worth $5, but they won’t redeem it. They even say that they don’t even have the $5 even if you wanted to redeem it.
By talking about all of this, Lloyd Blankfein was talking about how money has morphed from something entirely different to what it is right now. The representation of value is a far cry from what it initially was.
The advent of cryptocurrencies is pretty much the same. There is a continuing morphing of the representation of value. Fiat currencies have value because the government and financial institutions say they do. It is not too farfetched to want a currency that has value based on consensus.
Blankfein went on to say that he himself doesn’t own any Bitcoin. Despite that, he feels that denying the possibility of the mass adoption of cryptocurrencies would be too arrogant.
Possible Crypto Expansion by Goldman Sachs
Goldman Sachs is considering expanding into the cryptocurrency world. They have recently made an announcement that they might offer custodian services for cryptocurrency funds.
If this move indeed does fall through, it will place the financial giant at a unique position. Goldman Sachs will become the first significant investment bank that will provide a backing for cryptocurrency funds. With a name like Goldman Sachs making such a move, other institutional investors might possibly flock into this industry as well.
Initially, Goldman Sachs announced its plans for Bitcoin futures trading desks to match the client demands. A month later, they revealed plans to extend beyond it. Goldman Sachs is looking to expand itself into this completely new asset class. This will mean that an increasing number of Wall Street firms will also have a positive outlook towards the world of cryptocurrencies.