Goldman Sachs CEO Reveals Bank’s “Extensive Research” for its own Stablecoin Similar to JPM-Coin
- Crypto Fever Spreading: After JP Morgan and Facebook, Goldman Sachs looking into its own cryptocurrency
- Stablecoins are the direction payment system heading for CEO David Solomon
- Crypto regulations will change that will have these tech giants like Facebook partnering with banks
Earlier this month, Facebook unveiled “Libra” and now Goldman Sachs is doing “extensive research” on tokenization, as revealed by David Solomon, the CEO of one of the largest investment banking companies in the world, in an interview with France’s Les Echos.
Solomon didn’t comment on having any discussion with Facebook regarding its cryptocurrency or wallet “Calibra” but said his company finds the principle “interesting” and believes this is the direction that is of stablecoins that the payment system is heading for.
The fact that JP Morgan has already launched its own currency and others are also considering, in response to if Goldman Sachs could play a part in this disruption, he said, “Absolutely.”
“Assume that all major financial institutions around the world are looking at the potential of tokenization, stable wedge and frictionless payments,”
However, he says, it is “too early” to know which platform will prevail as Facebook’s project is still “very, very far from the launch.”
Banks Won’t Disappear but They Have To Evolve
As for the regulations, he says regulators all around the world are watching and being “attentive” to payment flows.
“There will be a change in regulation, that's for sure,”
On the topic of weather tech giants would want to submit to the same regulatory constraints as of banking giants, Solomon said these companies are trying to monetize their huge number of customers.
Instead of becoming a bank themselves, they will get into “partnerships with banks” just like Goldman Sachs is Apple's partners in credit cards, added Solomon.
In the light of cryptocurrency mania spreading, can banks disappear? Solomon doesn’t think so.
Though he doesn’t think this will force banks to disappear, he does say that “they will have to evolve, because the trades linked to the payment flows will become less profitable.”
Back in April, Solomon had denied that the bank has any plans to open a cryptocurrency trading desk while saying that it’s a new area and unclear from a regulatory perspective but at some point, they might.