Goldman Sachs Will Launch its Own Stablecoin
In an interview with CNBC, McDermott said the company was exploring the possibility of creating a digital Fiat token. In other words, Goldman Sachs is considering a stable coin whose price is pegged to the US dollar or a similar national currency.
The context suggests that the token is built on a blockchain, a distributed ledger, with a quorum like ethereum. All assets and liabilities come from the blockchain into the financial system, “McDermott argued.
The New Stablecoin
McDermott said Goldman Sachs’ stablecoin is still in its infancy. Even the company is considering possible use cases, implying that the financial system’s dependence on fiat currencies like the US dollar could shift away from blockchain technology.
The company denied that it had a strict plan to consider a stablecoin or other digital Fiat token for use in financial markets by 2018. Goldman Sachs has led other blockchain efforts in the past, and McDermott says JP Morgan employees who previously worked on Blockchain Quorum are also part of the project team.
Last year, chief executive David Solomon said Goldman Sachs was watching the cryptocurrency market as it develops. The company took cryptocurrencies a step closer last year when Salomon announced that it was investigating the tokenization of financial assets.
The Other Upcoming Ventures by Goldman Sachs’s Ventures
Goldman Sachs has also backed several cryptocurrency companies, including Circle and BitGo, and other major financial institutions have already introduced their stable coins.
Bank Operated Coin System
JP Morgan introduced the JPM coin in June 2019, and Wells Fargo has also begun testing its stable currency. Although the stable coins are aimed at institutional users, it is unclear whether the general public will ever use them.
Goldman Sachs has distanced itself from public trading in cryptocurrencies, calling the market a “strategic alternative” to traditional financial institutions such as banks and insurance companies. Some crypto investors are skeptical of banks that operate stable coins because they allow banks to control transactions, which Bitcoin is supposed to prevent.
Also Read: The Older Prefers Gold While, The Youngers Like Bitcoin Says JPMorgan
