Goldman Sachs Group Inc. is dropping its plans to open a trading desk for digital currencies as the regulatory requirement for digital currency is still unclear, according to Business Insider. Over the past weeks, the executives of Goldman Sachs have said that a lot of processes still need to be taken, most of them beyond the control of the bank, before a bank under regulation would be allowed to trade digital currencies.
Michael DuVally’s Remark
A spokesman of Goldman Sachs – Michael DuVally, said that “At the moment, the company has not reached a conclusion on the scope of their digital currency offering.” As a result of this news, the entire digital currency market is in the red, and Ethereum is one of the top losers over the past twenty-four hours.
In October last year, Lloyd Blankfein – an executive of Goldman Sachs – posted a tweet saying that “He’s still thinking about Bitcoin (BTC), but he has not made conclusion whether to reject or endorse. Adding that folks were also skeptical when paper money displaced gold.”
The tweet of Blankfein was in contrast to the comments of Jamie Dimon – the CEO of J.P Morgan Chase & Co – who said Bitcoin (BTC) is a fraud. He said that Bitcoin is worse than tulips bulbs. The rival of Goldman, Morgan Stanley, spoke in favor of Bitcoin (BTC), with James Gorman referring to it as “more than just a fad.”
The digital currency can be used to move fund across the globe swiftly with relative anonymity, without an intermediary such as a government or a bank. A fund holding the crypto could draw more investors and push the value of the coin higher.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $6,466 after a decrease of more than 12 percent over the past twenty-four hours. The current market cap of Bitcoin (BTC) is $111.57 billion and its trading volume over the past twenty-four hours is $6.61 billion.