Goldman Sachs Paying Close Attention to Bitcoin (BTC)
Goldman Sachs CEO David Solomon has reiterated during the bank’s Earnings Conference Call on April 14, 2021, that it’s still paying close attention to bitcoin (BTC), as its clients are very much interested in cryptocurrency. Despite serious demand from its users, Solomon says Goldman Sachs still can’t add support for bitcoin as a principal, due to regulatory uncertainties in the United States.
Regulatory Dark Clouds Holding Goldman Sachs Back
It will be recalled that Goldman Sachs announced earlier in March 2021, that it plans to roll out cryptocurrency investment products and make them accessible to clients of its private wealth management group in Q2, 2021.
“Goldman is looking to offer a “full-spectrum” of investments in bitcoin and digital assets, whether that’s through the physical bitcoin, derivatives or traditional investment instruments,” revealed Mary Rich, Goldman Sachs global head of digital assets at the time.
However, it appears that move may be further delayed, as David Solomon, the CEO of the 152-year-old American bank, has hinted that the highly reputed financial institution may not be able to act as a principal for bitcoin (BTC) and other crypto assets.
Solomon noted that despite serious demand for bitcoin from its clients, the current regulatory dark clouds surrounding the U.S. crypto space make it almost impossible for the bank to fully join the bitcoin bandwagon.
“We need to operate within the current regulatory guidelines. For example, we cannot own bitcoin or trade it as a principal,” Solomon declared.
Bitcoin Very Important
Having previously described bitcoin (BTC) as a vehicle for fraudsters, the continued success of bitcoin and other cryptocurrencies have forced the bank to change its stance towards the world’s flagship crypto just like Jamie Dimon and other notable critics.
In 2021 alone, bitcoin has gained a massive 112.48 percent, with its market cap now comfortably sitting above $1 trillion, a feat most U.S banks have been unable to achieve even with their decades of existence.
Now, Goldman Sachs has predicted that innovative technologies such as blockchain, which powers cryptocurrencies, has what it takes to revolutionize the financial ecosystem in the near future, and change the way money is moved across the world.
“There is also serious focus on bitcoin and other cryptocurrencies, where the trajectory is less clear as market participants evaluate their possibility as a store of value,” Solomon added.
At press time, the bitcoin (BTC) price is hovering around $62,490, as seen on CoinMarketCap.