Goldman Sachs said it would carry out digital currency trading, Wall Street is more concerned about how to monitor

US media on Goldman Sachs will carry out digital currency transactions can be described as a ripple.

In order to ease the situation, Goldman Sachs CEO Lilyd Blankfein (LloydBlankfein) wrote on Twitter: "I still know that there is no conclusion, do not support nor exclusion.I know that when the paper money to replace gold, it was skeptical "

The temptation of Bitcoin on Wall Street

Since its inception, the outside world has been full of controversy and doubt. There is no mainstream bank to join the ranks of market makers, there is no big exchange to provide trading platform. Bitcoin's sharp price volatility does drive Wall Street's customers to ask banks to bid for bitmaps.

Goldman Sachs estimates that the total market capitalization of digital money is about $ 120 billion, of which there are nine kinds of digital encryption currencies with market capitalization of more than $ 1 billion . As the largest digital currency , Bitcoin's market capitalization reached $ 55.5 billion, accounting for nearly 50% of the total market capitalization. At the same time, the issuance of digital money ICO (InitialCoinOffering) fund-raising process is also very hot.

Since the beginning of 2017, bitcoin has risen from less than $ 1,000, once touched the high of $ 4,900, and then fluctuated sharply, and the current price is around $ 4,400.

This year, the volatility of traditional assets continued to slump, making the profits of market makers down, hit the Wall Street agency business income. Therefore, the other way to digital money as a source of innovative profits, Wall Street investment bank also has a lot of attractive.

However, the sharp fluctuations in the price of digital money , but also to prevent Wall Street to immediately carry out trade barriers.

Bank of America Merrill Lynch conducted a questionnaire survey of more than 200 fund managers worldwide managing at least $ 600 billion in assets. 26% of the fund managers believe that Bitcoal trading has been too "crowded", the proportion of more than Nasdaq and short dollar. That a deal is too crowded, that is, too many investors are engaged in this transaction, which means that its upward trend may be reversed.

On Sept. 12, when Bitco was withdrawn from the top to the bottom, Jamie Dimon, CEO of JP Morgan Chase, once again concluded that Bitcoin was a bubble at the Barclays New York Financial Conference, "there would be no good end" And predict that the bubble will eventually burst. "It will someday collapse, it 's a scam, and it' s really real that I am really surprised that no one can see its true colors.

"The money is not going to work, and people are investing money in a currency, and the people who buy it are so smart that it does not work." He said it was worse than the tulips.

"Tulip Fever" refers to the Dutch in the 17th century, the price of tulip bulbs speculation in the speculators rose nearly 60 times after the winter, the tulip a large number of listed, the bubble was shattered, became the first time in human history Record the financial bubble.

Damon said that if JPMorgan traders traded a bit currency, "I fired them in a second."

"No money to avoid supervision"

In addition to the transaction, there are supervision. The volatility of the bitcoin is not only an asset bubble, but also a huge challenge to regulation.

Federal Reserve Philadelphia branch in a report at the beginning of the year pointed out that the current bit currency trading volume is too small, the price volatility is too large reality, the same time period, the price of bitcoels in different exchanges exist between Big difference. In short, the volatility makes it hard to determine the price of a bit currency at a certain point in time.

Therefore, if the bank conducts bit-currency transactions, many regulatory regulations will be difficult to implement. For example, there will be a lot of uncertainty about the reasonable valuation of the bank's assets; the requirements for a unified bank offer will also be due to price fluctuations and can not be properly implemented.

LarryFink, CEO of BlackRock, the world's largest executive firm, also questioned the use of Bitcoin in an interview. "I think most of the digital money is only to prove how large the size of the global money laundering funds in Asia, it is more like a speculative platform, a large number of money laundering.

The contradiction lies in that a major technical feature of digital money is an anonymous transaction, but to enter the major banks in Wall Street, it violates the regulatory authorities for banks must understand their own customer requirements.

"Anonymous money is a very interesting concept because it provides privacy for people and its implications for the central banking system," said James Gorman of Morgan Stanley CEO.

"There is no government to support a virtual currency that can not be regulated," Dimon said in 2015, and the size of the bitmaps is still small, and many members of Congress have expressed support for Silicon Valley innovation, but in fact there is no money to avoid the government Supervision."

It can be seen that the CEOs of these banks, regardless of their attitude to Bitcoin are much different, the core of the thinking, are focused on how the government into the system of Bitcoin.

On the other hand, bank lords on the basic technology of digital money - block chain, is very sure.

As early as 2015, JPMorgan Chase and 22 other major banks have partnered with a chain-chain start-up company R3 to study block-chain technology. "Block chain technology is a cheaper, more efficient and safer technology, it can be used to transport money, but that currency will be dollars, not bits of money," he said.

Neel Kashkari, chairman of the Federal Reserve's Minneapolis branch, also said earlier this year: "I think the chain-chain technology and its underlying technology are more interesting and perhaps more potential than the Bitcoin itself. Technical views are gradually changing, the Fed is also . "