Goldman Sachs CEO Lloyd Blankfein is not comfortable with Bitcoin, but he says that he understands that cryptocurrency may prove to be the next step in the modern evolution of money.
The investment banking executive shared his updated thoughts on cryptocurrency in an interview with Bloomberg held at the investment banking firm’s Sustainable Finance Innovation Forum in New York.
He stated that the thought of Bitcoin gave him a “level of discomfort” but admitted that he felt the same level of skepticism when he first encountered a cell phone.
“I have a level discomfort with Bitcoin, as I have a level of discomfort with anything that’s new,” Blankfein stated. “But I’ve learned over the years that there’s a lot of things that work out pretty well that I don’t love.”
Blankfein further reflected on the evolution of money and said that it has taken paths that many people from earlier eras might not have predicted.
“Maybe in the new world, something gets back by consensus. Instead of a government fiat, maybe it’s a consensual arrangement by people that agree that it’s worth something,” he added.
Blankfein added that, if Bitcoin did achieve mainstream adoption, he would be able to explain how it fits into the historical narrative of monetary philosophy. “If we went into the future and bitcoins were successful, I would be able to explain how it was a natural evolution from hard money,” he stated.
“Maybe 200 years from now even someone like me might be comfortable with it, but right now, I tell you: I don’t have an investment in it, but I’m not willing to pooh-pooh it and that’s why I say I’m open to it,” Blankfein concluded.
https://www.youtube.com/watch?v=YIMWLOSRZ_A
Last month Blankfein tweeted a shocking tweet about Bitcoin revealing that he and his company were still thinking about digital currency noting that people were “skeptical when paper money displaced gold.”
Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.
— Lloyd Blankfein (@lloydblankfein) October 3, 2017
Goldman Sachs is considering becoming the first Wall Street investment bank to launch a dedicated Bitcoin trading operation. Which would put some of the bigger traders into the market of cryptocurrency, Wall Street Journal reported.
“In response to client interest in digital currencies we are exploring how best to serve them in this space,” a Goldman Sach’s spokeswoman said.
Blankfein’s view on cryptocurrency is much more neutral compared to investment banking giant JPMorgan’s CEO Jamie Dimon who has even gone as far to call technology that he doesn’t understand a “fraud” stating that a (FIAT:$196,383,925,625) market is a bubble.
Dimon was subsequently accused of market manipulation in Sweden by Florian Schweitzer, the managing partner of a London firm called Blockswater since his firm made large purchases of Bitcoin after the price dipped from his comments.
IMF head Christine Lagarde has previously warned bankers that “it’s time to get serious about cryptocurrency.”
Meanwhile, 6 major banks excluding Goldman Sachs have partnered to create a cryptocurrency for moving fiat called the “Utility Settlement Coin.”
Lagarde further spoke at the Bank of England’s conference in London where she stated cryptocurrencies like Bitcoin could give central bank-issued currencies and existing monetary policies “a run for their money.” She further called on central bankers to “be open to fresh ideas” and that it “may not be wise to dismiss virtual currencies.” The IMF itself has since reportedly even suggested creating a cryptocurrency called IMF Coin, the Wall Street Journal reported.
Bitcoin is currently trading at [FIAT: $7,229.19] according to Coin Market Cap at the time of this report.
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