Major banking firm Goldman Sachs could eventually launch its own digital token, tech media outlet TNW reported this week. The article cited recent comments from the bank’s CEO, David Solomon, confirming that the firm has been researching the tokenization concept and recognizes its potential benefits.
According to TNW:
Solomon expressed his belief in the potential of blockchain-based digital currency in enabling frictionless cross-border payments. Similar to JP Morgan, Goldman Sachs believes such a currency will need to be backed by actual fiat currencies.
Solomon reportedly confirmed his company’s interest in cryptocurrency during an interview with Les Echos, a French newspaper. He also suggested that officials would move to change regulations on cryptocurrencies sooner rather than later, since they’re “very attentive to payment flows.”
When asked about his take on the current cryptocurrency competition between banks and tech companies, Solomon said that it was simply too early to predict which firm or platform would ultimately dominate the cryptocurrency market. He did, however, defend the banking industry’s move to explore cryptocurrency’s benefits, suggesting that banks will need to innovate if they want to remain relevant – “otherwise, they will disappear.”