Blankfein Not ‘Systemically’ Worried About Cryptocurrencies Despite Misgivings

Lloyd-Blankfein-Crypto

Despite the firm’s plans in May to establish Wall Street’s first Bitcoin trading platform, Goldman Sach’s CEO Lloyd Blankfein expressed his misgivings regarding the said cryptocurrency in an interview with Bloomberg.

Blankfein admitted that he doesn’t ‘do’ it, and that he doesn’t ‘own Bitcoin.’ He even joked that nobody in Goldman Sachs is involved with the cryptocurrency as far as he knows.

However, he urged the listeners at The Economic Club of New York to take his remarks with a grain of salt. He likened his views on the said crypto to his initial opinion of cell phones when they first came out, thinking, ”God, who… is gonna love this thing around? And besides, there are ten phone booths on every corner.”

He admitted that it’s fairly easier for him to postulate why a specific thing happened, instead of predicting whether it could happen or not at all. He also doesn’t worry about the crypto in a ‘systematic’ way.

Blankfein said:

“I can’t say why it should work… but if it did work out, I could give you the historical path why that could happen.”

In an article in the New York Times in May, the investment giant announced its plans to set up a Bitcoin trading operation at its bank — the first of its kind in Wall Street. To be sure, “Goldman will not initially be buying and selling actual Bitcoins,” the article read.

The bank concluded that the said cryptocurrency is not a fraud despite it not having the characteristics of a currency. Furthermore, some Goldman clients wanted to possess the crypto as a valuable commodity like gold, given its limited supply which could be mined through a complex and virtual system.

 

(Image Source: Nymag.com)

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