Goldman Sachs & Virtual Currency

The financial period of crypto has arrived. Despite regulatory constraints, this is gaining ground as a common currency. Many believe that this is the future of the global payment system. However, smart banks plan to make stabilizers to fit the products provided by competitors and their technology companies.

Goldman Sachs Make Virtual Currencies?

in June 27, in an interview with French newspaper Les Echos, Goldman Sachs CEO revealed that the group was conducting extensive research on tokenisation.

He refused to confirm any agreement with Facebook regarding Libra's digital currency and Calibra wallet. However, the chief executive emphasized that the concept of tokenization was interesting.

Solomon believes that the stablecoin set with fiat seems to be the future of the global payment system. Each cryptocurrency will have a fixed value that will be exchanged for one US dollar.

The answer is whether Goldman Sachs will follow JPMorgan Chase's steps and make its virtual currency indicate that the bank might consider the option.

He suspects that globally, all major banks are studying options that support payment without friction, possible tokenization and stability.

Solomon also predicted that a positive response to virtual currencies would lead to changes in digital currency regulations. He admitted that newcomers like Facebook would appear in the cryptosphere.

However, these competitors will not force banks to close. According to him, financial institutions must remain innovative to balance competition. They will likely go out of business if they don't develop new services and products to match their competitors' offers. In addition, transactions involving payments will be less profitable.

The CEO considers that technology giants like Facebook tend to avoid restrictions posed by cryptocurrency regulations. These companies can choose to partner with banks that have experienced problems. The partnership will be a profitable choice for the technology giant rather than being a financial institution.

In other developments, Solomon denied the possibility of Goldman Sachs launching crypto trading. He made a statement during his presentation before the United States House of Representatives Financial Services Committee, in April. From a recent interview with CEO of Goldman Sachs Group, the US investment bank has plans to launch its own virtual currency.

The CEO, David Solomon, has confirmed the bank's interest in tokenization. He also pointed out that the payment system gradually received cryptocurrency. The possibility of the remittance market will also integrate digital currencies. Tokenisation will enable safe and fast fund transfers through technology networks.

Reports at the largest US bank, JPMorgan Chase, earlier this week showed that financial institutions will launch their digital currencies by the end of 2019. JPM coins are expected to support instant money transfers to reduce risk and client costs. Because banks move trillions of dollars every day, JPM coins will ensure safe transactions.

Cryptocurrency is designed to be used initially by the bank's main institutional customers. However, other customers will be allowed to use it later. JPMorgan Chase is the first American bank to succeed in making digital coins.

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