GOLDMAN SACHS ALLOWED THE CREATION OF ITS OWN CRYPTOCURRENCY

Posted 10 August, 2020

The head of the bank's digital assets department, Matthew McDermott, said that within 10 years the issuance of loans, the issuance of securities and the financial system as a whole will switch to blockchain, and explained the need for such changes

 

Goldman Sachs is exploring the possibility and prospects of launching its own digital currency, new director of digital assets department Matthew McDermott said in an interview with CNBC. He clarified that now the initiative is at an early stage of development, the company is assessing the potential of the future asset and its application.

 

“We are exploring the commercial viability of creating our own digital fiat token. But these are only developments, we are still evaluating the potential and exploring possible use cases, ”said McDermott.

 

He added that in the next 5-10 years, all the assets of the financial system and transactions taking place in it will work on the blockchain. Transactions such as issuing loans and issuing securities will be carried out in digital format, this will provide "tremendous efficiency". Banking processes are largely outdated, which makes them wasteful in terms of costs, but the use of blockchain will help solve this problem.

 

According to McDermott, the company lured the former head of JPMorgan's digital assets department, Ole Harris, to create the JPM Coin digital coin. McDermott stressed that Goldman Sachs admits the opportunity to work with JPMorgan on new technology. Collaboration and consensus building between banks, institutional investors and regulators is critical to blockchain acceptance.

 

August 5 Sergei Popov, director of the Transaction Business Division of Sberbank, said that the company could issue a digital token, the rate of which will be pegged to the ruble quotes. It will become a settlement tool for transactions with other digital financial assets.

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