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David Solomon of Goldman Sachs states he possesses ‘minimal’ bitcoin but is monitoring it attentively.
“I’m an observer of bitcoin,” Solomon stated at the World Liberty Forum on Wednesday, mentioning that he is still trying to grasp how it operates.
Goldman Sachs CEO David Solomon at the Liberty World forum in Palm Beach. (CoinDesk)
What to know:
- Goldman Sachs CEO David Solomon indicated that he possesses a minor quantity of bitcoin but is closely monitoring the cryptocurrency as part of a broader transformation in financial technology.
- Solomon asserted that traditional finance and cryptocurrency are components of a unified evolving system, with tokenization set to play a significant role in future market architecture.
- He noted that Goldman’s limited engagement in crypto has primarily been influenced by what he termed restrictive regulation, cautioning that excessive rules can siphon capital from the financial system while advocating for a measured approach.
PALM BEACH, Fla. — Goldman Sachs CEO David Solomon mentioned that he holds “very little, but some” bitcoin, while he keeps a close watch on the asset as part of a broader focus on how technology is transforming finance.
“I’m an observer of bitcoin,” Solomon remarked at the World Liberty Forum on Wednesday, stating that he is still striving to comprehend its movements.
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While Goldman Sachs has adopted a cautious stance towards digital assets, the firm’s leadership perceives cryptocurrency as part of a long-term evolution in financial infrastructure, Solomon emphasized.
He rejected the notion that traditional banks and cryptocurrency companies are engaged in a zero-sum competition. “It’s one system, it’s our system,” he remarked. “We must approach it correctly … and there will be differences and that’s acceptable.”
Solomon stated that the market evolution is being influenced by extensive technology platforms, and tokenization is expected to be a pivotal element.
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“The evolution of those platforms … there’s evident impact,” he said. “Tokenization … that I consider to be very important.”
While other major banking institutions like JPMorgan and Morgan Stanley have delved deeper into the digital asset sector, Goldman Sachs’ engagement has been relatively restrained so far. The primary reason, according to Solomon, is regulation.
“Until recently, the regulatory framework was exceedingly restrictive,” he humorously remarked, but indicated that as regulators start to offer more flexibility for firms to become “more involved” in the sector, Goldman may reconsider its position.
Read more: Goldman Sachs sees regulation driving next wave of institutional crypto adoption
‘Got to get it right’
Solomon criticized the economic repercussions of excessive regulation.
“When this system is burdened with excessive regulation, you begin to extract capital,” he stated. “That has certainly occurred in the past five years.”
He underscored the importance of a correct approach. “It’s essential to do it thoughtfully, and we’ve got to get it right.”
Solomon previously mentioned that the banking giant is intensifying its research and internal discussions surrounding crypto-related technologies, including tokenization and prediction markets.
Read more: Goldman is ‘spending a lot of time’ on crypto, prediction markets efforts, CEO Solomon says
