Goldman Sachs CFO Clarifies Firm’s Crypto Plans

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Goldman Sachs CFO Clarifies Firm’s Crypto Plans

Goldman Sachs has lately garnered a lot of unintended exposure over its activities in the cryptocurrency and blockchain worlds, and much of it might be attributed to misinterpretation. According to CNBC, the company’s Chief Financial Officer, Martin Chavez, called recent reports that the big bank is abandoning plans to launch a cryptocurrency trading desk “fake news.” Speaking at the TechCrunch Disrupt Conference in San Francisco, Chavez shed light on how Goldman is exploring the digital currency and blockchain worlds.

Bitcoin Derivatives and More

In response to recent claims that Goldman had abandoned plans to launch a digital currency trading desk, Chavez said, “I really have to classify that news as false news.” Although it is unclear what a Goldman crypto trading desk would look like, the CFO did state that Goldman is working on developing a bitcoin derivative since “customers desire it.” “The next level of the research is what we call non-deliverable forwards, there are over the counter derivatives, they’re paid in US dollars, and the reference price is the bitcoin-US dollar price established by a number of exchanges,” Chavez said.

Goldman and Crypto

The fresh Goldman material has added to the conjecture over how the corporation would deal with digital currencies in the future. Outgoing CEO Lloyd Blankfein tweeted in October 2017 that the business was “still thinking about bitcoin,” adding that Goldman was neither promoting nor opposing the cryptocurrency at the time. Similarly, a Goldman representative told CNBC that the business was “exploring how best to serve [customers]” in the digital currency market due to client demand.

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Chavez’s recent remarks emphasize the fact that investors will most likely have to wait for Goldman’s engagement in the digital currency arena to take form. “When we spoke about examining digital assets…it was going to be a continuing inquiry,” he said. “Perhaps someone thinking about our actions here were really enthusiastic that we would be developing markets as primary and tangible bitcoin, and when they went into it, they understood part of the progression, but it’s not here yet.”

Although Goldman has approved CBOE bitcoin futures for many months, the bank is worried about a secure custody solution before becoming engaged in actual bitcoin.

Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the writer to do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site. The author owns bitcoin and ripple as of the day this post was published.

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