Talk to the man on the street about investment banking, and it’s likely he’ll mention Goldman Sachs. The second largest firm in a a sector worth some $87 billion, and accumulating total advisory fees of $5 billion per year, Goldman Sachs is about as close to a household name as the investment banking sector gets. Goldman is precisely the kind of mainstream, establishment player that has traditionally shunned the world of cryptocurrencies, and that many in the crypto community would dearly love to get on board. So it was a pleasant surprise today to hear Goldman CEO Lloyd Blankfein speaking quite openly and fortrightly about a bright future for the world of digital currencies.
Blankfein has often been on the fence in terms of his attitudes towards crypto, and indeed as recently as 2014 Goldman’s official line was that Bitcoin could not be regarded as a currency at all. But today’s comments seem to represent a clear endorsement of the potential of the blockchain sector, as Blankfein alluded to crypto representing the “natural progression from hard money to digital money.” He suggested that to discount cryptocurrencies due to their novelty would be “arrogant”, and pointed to similar historic transitions between gold and silver coins and paper money, observing that people were initially equally distrustful of fiat currency.
Today’s comments come after news earlier this week that Goldman are not only developing a platform to offer crypto futures and derivatives, but indeed are seeking to establish their own trading desk for digital assets. This apparent softening of stance could have significant implications for other major players in investment banking and financial services, and indeed for the space as a whole.
