Now that David Solomon has been confirmed as the new CEO of Goldman Sachs, people who buy bitcoin can expect to see some changes in how the financial institution approaches investments in cryptocurrencies. The change in leadership could also create a ripple effect that influences how other institutions, including the government, view non-fiat currencies like bitcoin.
Goldman Sachs Already Has Some Investments Connected to Bitcoin
During a conversation with Bloomberg, Solomon mentioned that Goldman Sachs already has investments connected to bitcoin in the form of publicly-traded derivatives. The new CEO then revealed that Goldman Sachs is “clearing some futures around Bitcoin, talking about doing some other activities there…”
Some of the bank’s cryptocurrency investments came at the urging of investors who want to explore new opportunities to earn money. The existing investments, however, shouldn’t come as a surprise given that former Goldman Sachs CEO Lloyd Blankfein held a cautiously optimistic view of emerging currencies. While Jamie Dimon, CEO of JPMorgan Chase, called bitcoin a “fraud” and stated that he wouldn’t “talk about Bitcoin anymore,” Blankfein admitted that he had marginal knowledge of the currency and believed that his lack of experience doesn’t reflect negatively on decentralized currencies.
Dimon, by the way, later backtracked on his statement, saying that he regretted calling bitcoin a fraud and admitting that blockchain technology was real. In fact, JPMorgan Chase launched a blockchain-based system capable of reducing the amount of time that it takes to verify global payments from weeks to hours.
Change in Leadership Creates Opportunities for Innovation
Although Blankfein deserves applause for his position, it often takes a change in leadership for large corporations to explore the latest innovations. Solomon seems just like the type of person willing to challenge preconceptions and invest in future blockchain innovations. The 56-year-old investment banker also performs under the name DJ D-Sol. Most of his musical work falls into the electronic dance music (EDM) genre, which suggests that he’s more familiar with technology than the average banker.
Don’t expect Solomon to make sweeping changes, though. As an investment banker, he understands the importance of caution. Each step that Goldman Sachs takes toward investing in crypto will face extreme scrutiny.But if a titan like Goldman Sachs shows that it finds value in crypto, it is likely other institutions will follow suit.
Could Goldman Sachs Influence the Government’s Position on Crypto?
The strong connection between Goldman Sachs and the United States government could also influence how political leaders view non-fiat currencies. If Solomon finds that cryptos offer rewarding opportunities for investors at Goldman Sachs, his opinion, combined with the SEC’s emphasis on crypto regulation, could prompt many banks and government officials to see digital currencies in a more positive light.
No one knows exactly how the future will unfold. Putting a pro-crypto investment banker in charge of Goldman Sachs, however, shows shifting attitudes. These days, investing in cryptos isn’t just for young, tech-savvy people who spend their whole days on computers. Increasingly, cryptos are becoming valuable investments for all types of people.
Goldman Sachs has confirmed Solomon’s position as CEO, but he will not take the seat until October. Expect to hear a lot about what he plans to do once he takes over the company. A lot of organizations are looking to him to set the right tone to make cryptos even more mainstream.