Take a fresh look at your lifestyle.

Goldman Sachs is working on its own cryptocurrency


Goldman sachs is studying the possibility of create your own cryptocurrency.

This was revealed by the company's new global head of digital assets, Mathew McDermott, during an interview with CNBC .

McDermott is a veteran of traditional financial markets, but despite this, he believes that in the future all financial assets could be managed on electronic records and its issuance and administration processes could be largely automated.

In fact, he told CNBC:

“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions occurring natively on the chain. So what you're doing in the physical world today, you're just doing it digitally, creating huge efficiencies. And that can be debt issuance, securitization, loan origination; essentially you will have an ecosystem of digital financial markets, the options are quite wide ”.

McDermott also decided to expand his team at Goldman Sachs, doubling the workforce by hiring people in Asia and Europe, including Oli Harris, the now former head of digital asset strategy at JPMorgan Chase.

From JPM Coin to Goldman Sachs cryptocurrency

Harris himself was involved in the development of JPM Coin, the coin stable at JPMorgan, and was previously also vice president of Quorum, the Ethereum-based blockchain platform on which JPM Coin is based.

McDermott's team is investigating how distributed ledger technology can be used in the credit and mortgage market, but says the technology will only take off when it captures a critical mass of users in the traditional financial world.

For this reason, Goldman Sachs' new global director of digital assets reveals that he is spending a lot of time discussing the technology with other companies, including JPMorgan and Facebook.

One of the focal points is the development of a stable currency, a project similar to JPM Coin or Libra.

In this regard, McDermott said:

"We are exploring the commercial viability of creating our own fiat digital token, but these are the early days as we continue to work on possible use cases."

In other words, Goldman Sachs, particularly in the wake of the Facebook initiative, is also following in JPMorgan's footsteps.

Both traditional financial giants were initially very critical of Bitcoin, but then they realized the very interesting potential of blockchain and DLT and ended up studying the issuance of their own stablecoin.

JPMorgan has already launched it, Facebook is about to do it, and at this point it's conceivable that sooner or later Goldman Sachs will do so as well.

In fact, JPMorgan now appears to be firmly established in the world of cryptocurrencies, and it is not impossible that, in the end, Goldman Sachs will take a similar path.

Leave A Reply

Your email address will not be published.