David Solomon, the CEO of Goldman Sachs, believes that blockchain is more important than bitcoin.
David Solomon, the CEO of Goldman Sachs, one of the world's most powerful financial institutions, has expressed his thoughts on the bitcoin vs. blockchain debate.
Bitcoin, according to Solomon, isn't as essential as the technological breakthroughs that blockchain and other new ledger-based tools can bring to the traditional finance world. The executive also indicated that he does not personally own bitcoin or ethereum.
The CEO of Goldman Sachs on Bitcoin
David Solomon, the CEO of Goldman Sachs, one of the world's largest banks, has stated that bitcoin is less significant to him than the technology that underpins it. In an appearance on CNBC's Squawkbox on Tuesday, the executive made these remarks. Solomon responded to a question regarding his thoughts on cryptocurrency by saying:
"My opinion on bitcoin, for example, is I really don’t know but it’s really not something, you know, individually that’s important to me."
Furthermore, he claimed that the underlying value of bitcoin lay in the blockchain technology that underpins it, as well as how it can impact the future of finance. Solomon claimed that he is a "huge believer" in the disruption caused by new technologies, and that Goldman Sachs is also attempting to participate in this revolution through its services app.
Solomon: ‘Bitcoin Is Not the Key Thing’
Solomon also indicated that, in his perspective, bitcoin was not necessary in the eyes of the banking industry, and that the effect of new technologies brought on by bitcoin and other cryptocurrencies was the key to modernising present banking platforms. Solomon emphasised:
"I think bitcoin is really not the key thing. The key thing is how can blockchain or other technologies that are not developed yet accelerate the pace of the digitization of the way financial services are delivered."
He did say, however, that as a speculative asset, it was vital for Goldman Sachs to sell bitcoin to its customers so that they could speculate on the currency's market behaviour.
Several major banking institutions, including JPMorgan, have recently endorsed bitcoin (BTC) as a legitimate asset. JPMorgan had previously questioned the genuine benefit of bitcoin's idea. Earlier this year, the bank began allowing its customers access to bitcoin investments. The bank's capacity to deliver this kind of service to its customers was unaffected by critics of its CEO Jamie Dimon, who previously stated that bitcoin was worthless.