According to Goldman Sachs CEO David Solomon, the banking giant is showing interest in Bitcoin and other crypto products.
Solomon believes that Bitcoin and decentralized finance (DeFi) will diversify the financial system and disrupt the banking industry. This comes weeks after the CEO pointed out that there is mounting pressure from clients for the institution to bring back Bitcoin and crypto-related products to its portfolio. Goldman Sachs suspended its cryptocurrency trading activities three years ago due to regulatory concerns.
The bank is now keen on reopening its cryptocurrency trading desks. Despite this, the bank believes regulation is needed to act as a principal with BTC and other cryptocurrencies. Goldman Sachs now plans to offer its wealth management clients Bitcoin investment products. Solomon, however, pointed out that the bank needs to work with the regulators’ guidelines before adding BTC to its portfolio or trading it as a principal.
According to the CEO, Goldman Sachs will take part in the latest inventions as they are critical to its clients with a significant impact on the future of global finance. The bank is also keen on the centralized digital asset popularly known as CBDCs. There has been mounting pressure for the central banks to adopt decentralized currencies and CBDCs sort of changing the narrative of the fiat currencies. These products are issued and controlled by the central banks, as the name suggests.
Several countries are now in the advanced stages of developing CBDCs. Chain leads the world toward the digitalization of currency and is planning to roll out the digital Yuan. The US is, however, dragging its foot in implementing a CBDC. Solomon believes the new central bank product will shape the future of the global financial systems, and Goldman Sachs must pay close attention to the latest innovations.