On the heels of its warning that the U.S. dollar’s grip on global financial markets could be over, Goldman Sachs is now preparing to enter an entirely new phase of operations, according to its new digital assets boss Mathew McDermott.
McDermott told CNBC in an interview last week that the highly influential global investment banking, securities and management firm is ready and willing to launch its first ever digital coin.
“We are exploring the commercial viability of creating our own fiat digital token, but it’s early days as we continue to work through the potential use cases,” McDermott said in the interview.
Previously, the firm cheered Bitcoin’s 2017 rally to around $20,000, before “betraying” Bitcoin believers after the bank’s top analysts revealed a Buzzfeed-style “five reasons why” they didn’t think the coin and other cryptocurrencies should be considered an asset class in a key investor call, Forbes.com reported.
McDermott has already been busy making major moves in the digital assets space.
He added former JPMorgan head of digital assets strategy Oli Harris to the team according to CNBC. Harris helped develop the JPM coin previously, which is the first digital coin from a major bank, intended to speed up and lower the cost of international payments through the use of blockchain technology.
McDermott added that he plans to use blockchain to upgrade the credit, mortgage and repo markets, adding that he feels there is a resurgence of interest in cryptocurrencies.
“We’ve definitely seen an uptick in interest across some of our institutional clients who are exploring how they can participate in this space.”
Meanwhile, data revealed from Bitcoin as well as Chainalysis, which focuses on digital currency trends, found that Wall Street giants are moving even larger transfers of Bitcoin and cryptocurrencies, with the trend said be to “just getting started,” Forbes reported.
The concern now is that widespread institutional adoption is doing the opposite of what crypto was originally designed for, the article added.
The time for mass adoption could very well be now, according to Catherine Coley, CEO of Binance, who shared her thoughts via email.
“What’s exciting and innovative about cryptocurrency is that it creates opportunities for people from every walk of life to acquire wealth,” she said.
“The time is ripe for mass adoption—the past week’s rise in the price of bitcoin, the expansion of this industry during a lockdown that caused strain on nearly every other sector of the economy,” she added.
Goldman Sachs Adds to Digital Coin Revolution
Needless to say, Goldman Sachs has a ton of work to do if it is to maximize its potential in the digital assets space, but with the firm’s all-star roster of cryptocurrency savvy tech leaders and the financial weight of the institution as a whole, there’s no better time than the present to get started.
Whether or not the new Goldman currency is a success seems academic at this point, but one thing’s for sure: the Bitcoin and cryptocurrency revolution shows no signs of slowing anytime soon, and may actually reach a fever pitch yet again as the coronavirus situation continues to unfold in the coming months.