Goldman Sachs will create a cryptographic asset similar to Bitcoin; Will compete with Libra

The Goldman Sachs Group is interested in exploring the possibilities of launching a cryptographic resource such as bitcoin, according to the bank’s executive director, David Solomon.

The leading investment banker told the French newspaper Les Echos that Goldman is conducting a thorough investigation on tokenization, the method of digitizing currencies or assets to enable its smooth transfer through an authorized ledger, as well as Bitcoin. . Solomon said he found the process “interesting,” adding that the global payments and remittances market would eventually integrate it.

   He reported the following: “Tokenization is the direction in which the payment system will go.”

Beer contest in the crypto space

Goldman’s potential foray into the digital currency industry comes four months after a rival banking giant announced a similar plan. JP Morgan Chase & Co. said in February that it had developed a private stablecoin called JPM Coin to facilitate cross-border payments. The US bank UU He confirmed this week that he would begin testing with the stablecoin with his clients in the country and abroad, this will be done “towards the end of this year”.

Meanwhile, the concept of tokenization is already expanding outside the banking industry. In June, Facebook also unveiled its ambitious cross-border remittance and remittance project called Calibra, after receiving Bitcoin signals. The social media giant also introduced a stablecoin called Libra, which, according to its technical document, would be linked to a set of “low volatility assets, including bank deposits and government securities” in multiple currencies.

Mr. Solomon declined to comment on whether or not Goldman has conversations with Facebook. He said it was too early to say which platform, either Facebook or JP Morgan, would prevail over the long term, assuming that “all major financial institutions around the world are considering the potential of” tokenization, stablecoin and frictionless payments “.

However, Mr. Solomon believes that the technology giants will not pose a significant threat to the banking sector in general. He said companies like Facebook and Apple already had “other concerns at the moment”, which would discourage them from submitting to strict regulatory restrictions.

    “Of course, these companies have many clients and will certainly try to monetize them. However, I think they will try to seal partnerships with banks instead of becoming banks themselves. We are Apple’s partners in credit cards. “

Bitcoin

Although banking tokens and bitcoin are under the same umbrella of blockchain technology, their mission is very different in the broader market.

Financial institutions want to develop their tokens in a global payment medium, bitcoin can not be due to its high price volatility. At the same time, the leading decentralized currency offers the masses a way to store and manage money away from the prying eyes of government and regulators. As of now, most users consider bitcoin as an investment against inflation assets such as fiat currencies. A bank token can not offer that.

Jeremy Allaire, Circle’s executive director, told CNBC on Monday that each digital token / cryptocurrency token would serve a purpose in a broader financial market.

“The bitcoin thesis is that we will see continued growth in non-sovereign money, and non-sovereign money will be more important, not less important,” said Allaire. “And more people around the world will see the value of a digital asset that is highly secure and resistant to censorship, such as bitcoin”

Reference: newsbtc.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *