During a recent earnings call, the CEO of Goldman Sachs, David Solomon, emphasized the importance of cryptocurrency in the baking space. David stated that in the light of blockchain networks and digital currency, many central banks worldwide have moved on to support the digital currency in their systems, seeking the long-term results they need to verify if the ecosystem is as profitable or not.
Many banks now have digital apps in which bank users can view their balance and conduct transactions using the internet without the need to visit branches and join long lines. So it seems that there is interest in the implementation of digital currency, but it is still limited to standard fiat currency.
The Future of Bitcoin
Regarding Bitcoin, David said that after multiple evaluation phases, people have started to see the crypto giant as just a “store of value,” which can be quite threatening to users in the long term.
Although Bitcoin is sitting on the top, it does not have the attractive features that Ethereum and other cryptos possess, which means that it is very likely that Bitcoin will eventually fall unless it comes up with more viable solutions that can maintain its user base and position in the market.
Some analysts believe that in the foreseeable future, Bitcoin will rise to the point where it will battle the market cap of Gold. Meanwhile, others believe that it will fall to its death, dethroned by either Ethereum or other rising cryptos like Cardano, who have been working hard to provide a better feature set to traders. So there still seems to be a mixed bag of emotions surrounding the future of Bitcoin.
No Cryptocurrency Implementation plans yet
Goldman Sachs recently made news, hinting at providing its private sector users with Bitcoin products for trade. Responding to this, David said that the company is always looking to push innovation and expand its functionality depending upon the demands of its user base, but for now, Goldman Sachs has no plans on joining the crypto space. However, the CEO did state that, for them to work around Bitcoin, the bank is more interested in the “institutional side.”
Furthermore, David expressed his concern about traditional banks, saying that, according to the current market statistical reports, which show the sudden rise of decentralized digital currency trade, it will become important for banks to embrace cryptocurrencies for them to survive in the future of the digital age.