- Goldman Sachs CEO David Solomon acknowledged Bitcoin’s potential as a store of value, akin to gold, but advised caution against overexposure to the cryptocurrency.
- Goldman Sachs’ commitment to digital assets includes plans to launch three tokenization projects by the end of 2024 and develop a marketplace for tokenized assets.
Goldman Sachs CEO David Solomon believes that the world’s largest cryptocurrency Bitcoin could “very well” function as a store of value similar to the yellow metal Gold. However, he cautioned investors from seeking over-exposure and added that investors should be wary of any overexposure to the asset class.
During an interview with CNBC on Tuesday, July 30, Solomon said that he’s never been a critic of Bitcoin. However, he still sees it as a speculative investment without much use case. But he acknowledged BTC’s use case as a potential store of value with the underlying blockchain technology, which makes it “super interesting”.
Solomon said that blockchain technology could digitize the entire financial system removing a lot of friction. Under Soloman’s leadership, Goldman Sachs has undertaken several measures such as introducing the crypto desk in 2021 and signaling its commitment to exploring digital assets.
Back then Solomon said that Bitcoin could eventually overtake Gold’s market cap to become the world’s largest asset class. Donald Trump echoed similar thoughts during the Bitcoin Conference last week in Nashville, per the CNF update.
Goldman’s commitment to the digital assets industry remains solid with the banking giant planning to launch three tokenization projects by the end of 2024, while specifically focusing on the US and European markets. Furthermore, it is also working on creating a marketplace for tokenized assets
A Push for Bitcoin Reserves
The Goldman Sachs CEO’s comments come at a time when there’s a growing debate over making Bitcoin a US strategic reserve, per the Crypto News Flash report. Wyoming Senator Cynthia Lummis submitted a draft bill on Tuesday, July 30, while proposing a revaluation of the Fed’s Gold reserves and using it partly to purchase 1 million BTC over the next five years. Lummis said that holding Bitcoin as a strategic reserve would considerably help the US reduce its national debt.
MicroStrategy CEO Michael Saylor believes that the first country to start accumulating Bitcoin by issuing fiat currency has the best chance of becoming the world’s next superpower. He also noted that Bitcoin could help countries, including the US, eliminate their rising national debt within two decades.
During the interview, the CNBC host discussed how Bitcoin has become a political issue, with both camps – Republicans and Democrats – extending their support to the crypto industry. Although Vice President Kamala Harris has talked about her efforts to “reset” the relations with the crypto industry, she continues to choose anti-crypto lawmakers, per the CNF report.
