Korean Money Manager of $112 Billion Talks Cryptocurrency with Goldman Sachs
The cryptocurrency markets used to be small financial bubbles reserved for only the most technical-minded experts on the internet. But as the industry developed and matured, public interest blossomed. With the explosion in ICO and cryptocurrency prices as a result of the Bitcoin all-time high last year, participation in the expansive cryptocurrency markets climbed to new highs. It became fashionable for everyone—not just tech experts—to research cryptocurrencies and consider investment in the long-term.
But the spike in interest has not been limited only to fringe investors in the general public. This past year has seen the introduction of billions of dollars of institutional money, or funds as a result of major investors and investment firms with a reputation in the traditional financial, and fiat, world.
This institutional money has its benefits and its detriments, according to experts within the cryptocurrency community. For one, institutional money provides a much-needed increase to market participation. More importantly, the participation of institutional and major traditional investors has helped to lend a sense of new legitimacy to the market, an asset which it has previously lacked.
In the newest example of this extensive trend within the cryptocurrency community, yet another major financial executive seems to be taking steps to get involved with the growing cryptocurrency markets.
According to an interview with Bloomberg, Korea Post President Kang Seong-ju reached out to known cryptocurrency expert and incoming Goldman Sachs CEO David Solomon, reportedly to discuss the prospect of entering the blockchain and cryptocurrency markets.
The Potential of Crypto
Kang was quick to espouse his belief that the cryptocurrency markets have massive potential for profit. Speaking to Bloomberg in Seoul, the executive outlined that cryptocurrencies are something that “many people are watching,” and continue to be an industry that requires institutions to educate themselves in order to capitalize and thrive.
At the moment, Korea Post does not seem to have any sort of substantive plan in place to begin investing heavily in cryptocurrencies. However, the meeting itself does seem to hint that there exists at least some level of healthy interest in the community and in the cryptocurrency markets, at least on the part of the higher-ups like Kang.
South Korea and Cryptocurrency
South Korea already seems to have a soft spot for cryptocurrencies as a budding market and industry.
The country is known as a “hot spot” for the cryptocurrency fever which dominated the last year. But according to the authorities in charge of regulation, as well as policy-makers in the democratic country, digital assets could present a significant danger to Korean citizens, especially the younger generation. The government released an official warning regarding cryptocurrencies, lamenting that the new method of payment could lead young teens to become involved in dangerous crime rings.
Additionally, South Korea officially banned ICOs, or Initial Coin Offerings, back in September of last year.
But Kang’s perspective is that, although there might not be any reason for his company to become invested in the volatile cryptocurrency markets, there is significant reason why they should at least try to learn more about the industry and its technical components.