Goldman Sachs: Why New CEO Could Turn Tables Towards Cryptocurrency and Bitcoin?

Goldman Sachs made an announcement that starting October 1, David Solomon will replace Goldman Sachs current CEO Lloyd Blankfein as the Wall Street firm’s new CEO. This news could bring delight to a lot of crypto investors as Mr. Solomon, with his comments in the past, seems friendly with cryptocurrencies.

Last Goldman Sachs CEO Blankfein was doubtful of Bitcoin

Mr. Blankfein took control of Goldman Sachs in 2006 and led the company through a recession created in part by bulge-bracket banks in the late 2000s. The dashing and the dynamic CEO, but was often found silent and watchful whenever he was asked about cryptos. When bitcoin’s price hit $10,000 in late November, he denounced it as a fraud and said its volatility undermined its usefulness as a store of value. In an interview with Bloomberg Television, he was quoted saying

“Something that moves up and down 20 percent in a day doesn’t feel like a currency, doesn’t feel like a store of value,” “If it works out — and it gets more established, and it trades more like a store of value, and it doesn’t move up and down 20 percent, and there is liquidity to it — we’ll get to it.”

In last year November when news was rife of Goldman Sachs launching a full-scale cryptocurrency trading desk, Blankfein had said that the investment banking giant does not have a “bitcoin strategy” and has no plans to establish one — even though CME, CBOE, were preparing to launch bitcoin futures contracts on their trading platforms.

Very recently Blankfein had turned pro cryptocurrency when he was interviewed by Bloomberg Editor-In-Chief John Micklethwait where he said bitcoin could be a “next step” in the evolution of money. This was the first time his positive views came out after the Wall Street firm started a crypto trading desk in May.

Also, read: Fed Chairman Powell Testifies Says Cryptos have No Intrinsic Value

Solomon has been friendly for bitcoin and cryptocurrencies

Unlike the doubtful Blankfein, Mr. Solomon has been positive on bitcoin and other cryptocurrency investment.  He is also fairly open to a financial world that has a place for cryptocurrencies. In May 2018 being the Chief Operating Officer (COO) of the Wall Street Firm had confirmed the news of the firms plans to start a crypto trading desk. Speaking to Bloomberg he had said that the firm is holding internal discussions about offering more cryptocurrency trading services in response to client demand. To quote him then he had said

“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously,”

Solomon said during an interview in China.

“We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

David Solomon could be an unusual CEO as he has a vision which is forward-looking. He had been heard saying that the firm must “evolve its business and adapt to the environment,” which, if interpreted well may involve offering more digital currency products.  

Mr. Solomon is expected to inherit a steadily sailing ship after Goldman Sachs came out with stellar quarterly revenues on the Q2 earnings announcement. His innovative, forward-looking thinking could just make the bank’s performance further stronger if he continues with his positive stance towards cryptocurrencies.

Will Goldman Sachs become more active in cryptocurrencies after Mr. Solomon takes over as the new CEO? Do let us know your views on the same.