Goldman Sachs could 'absolutely' play a role in crypto disruption, CEO says

Goldman Sachs CEO David Solomon claims the bank could “absolutely” play a role in cryptocurrency disruption and hinted it might be interested in issuing a digital asset similar to JPM Coin in the future. There are many financial institutions looking into possible uses of digital assets, Solomon said in an interview with French news outlet Les Echos.

“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoin and frictionless payments,” Solomon said. He also believes that banks will have to evolve as trades linked to payment flows are to become less profitable with the development of technology. Should they fail to innovate, they will disappear, he said. 

When asked about Facebook, Solomon declined to share potential discussions that might have taken place with their client. However, he said Goldman Sachs has done extensive research into tokenization. He said that blockchain gives a potential of creating “a stable digital asset based on a basket of real currencies that can move money across borders and without friction.”

“This is the direction in which the payment system will go,” he added. Nevertheless, Solomon was unable to say which payment platform would gain the most popularity in the future and whether Libra would be the one.