- The bank believes that the global payment systems are heading towards the direction of fiat-pegged stablecoins.
- David Solomon, the CEO of Goldman Sachs, also predicted that regulations will change in response to virtual currencies.
David Solomon, the CEO of Goldman Sachs, revealed to France’s Les Echos newspaper that the bank is performing “extensive research” on tokenization. Solomon believes that the global payment systems are heading towards the direction of fiat-pegged stablecoins. Solomon also said that Goldman Sachs finds Facebook’s Libra interesting but stopped short of confirming if they had any discussions with them.
When asked if Goldman Sachs will follow JPMorgan Chase’s example and issue a JPM Coin, Solomon said:
“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.”
Solomon also predicted that regulations will change in response to virtual currencies, however, he doesn’t think that new entrants in the cryptospace, like Facebook, will force banks to close down. He stated:
“Admittedly, they will have to evolve, because the trades linked to the payment flows will become less profitable. But there are many other reasons why banks must remain innovative, otherwise, they will disappear.”
Back in April, Solomon appeared before the United States House of Representatives Financial Services Committee and stated that Goldman Sachs has no plans to open a crypto trading desk.
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