Goldman Sachs CEO says Bitcoin is not a ‘threat’ to the US dollar

Cryptopolitan
Updated
Mitrade
coverImg
Source: DepositPhotos

In a recent interview, Goldman Sachs CEO David Solomon said that he does not see Bitcoin as a threat to the supremacy of the US dollar.


Sitting in an interview with CNBC yesterday while attending the World Economic Forum in Davos, Switzerland, Solomon said that the largest crypto by market cap is an ‘interesting speculative asset’ and that he does not believe it can challenge the US dollar as the de facto global asset.


The Goldman Sachs CEO added that the potential of digital currencies and the underlying blockchain technology that they are deployed on is remarkable. However, access to the technology is somewhat restricted for banks, Solomon said.


He noted existing legal and regulatory barriers as roadblocks that make it difficult for banks to adopt and implement the technology. Solomon also said that under current restrictions, Goldman Sachs can’t hold, invest, or engage in Bitcoin directly.


Blockchain could streamline traditional finance


As many analysts are hesitant to use Bitcoin as a direct financial tool, Solomon talked about the substantial potential of blockchain technology, which serves as the foundation of Bitcoin.


“The underlying technology is critical, and we are conducting significant research to explore ways it can reduce friction in the financial system,” he said. 

Last November, the company shared plans to spin off its Bitcoin platform as an independent subsidiary. Mathew McDermott, global head of digital assets at Goldman Sachs, said that the intention behind the proposed plan is to develop and trade blockchain-based financial instruments. The subsidiary is planned to launch within the next 12-18 months, subject to regulatory permission.


Stablecoins could extend US dollar’s dominance over Bitcoin


The debate around Bitcoin’s impact on the US dollar’s global dominance has also brought stablecoins into the spotlight, which many experts believe could serve as a tool to extend USD’s dominance. Lee Bratcher, the president of the Texas Blockchain Council, said in a recent interview, “If we want to continue US hegemony, we need the dollar to remain the world’s reserve currency.”


In order for the US dollar’s global dominance to continue, Bratcher said that stablecoins should be allowed to thrive because they give people from across the world easy access to the fiat currency.


The stablecoin market’s capitalization currently stands at over $220.64 billion. Tether (USDT) boasts the largest valuation of more than $138.5 billion. Meanwhile, Circle’s USD Coin (USDC), the second largest stablecoin in the market, has a market cap of approximately $51.51 billion.

The US dollar has sustained its value even though Bitcoin continues to grow more popular and its price continues to soar to new peaks. The US Dollar Index (DXY) is at 108.277, and is currently up 0.21% over the past month, according to data from TradingView. Meanwhile, Bitcoin is trading at $102,448.96 after rising more than 8% during the same period.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
3 Reasons Why XRP Is Showing Top Signals As Investors Begin To Rapidly Accumulate This New XRP RivalXRP top signals have surfaced in recent aggregator data, hinting at a potential slowdown following the token’s partial legal victories. Observers note that daily XRP trading volume spiked roughly 15% last week before tapering off, suggesting some whales might be eyeing exit points.  XRP’s spike last week Meanwhile, a new XRP rival has captured growing […]
Author  Cryptopolitan
11 hours ago
XRP top signals have surfaced in recent aggregator data, hinting at a potential slowdown following the token’s partial legal victories. Observers note that daily XRP trading volume spiked roughly 15% last week before tapering off, suggesting some whales might be eyeing exit points.  XRP’s spike last week Meanwhile, a new XRP rival has captured growing […]
placeholder
XRP Price Pump To $3.35 On The Horizon With Bullish Cup And Handle Pattern FormationThe XRP price is getting ready for a significant pump, as a new Cup and Handle pattern has just formed on its chart. A crypto analyst who identified the pattern has released an analysis, predicting that XRP could rise to $3.35, marking a new local high for the cryptocurrency. Cup And Handle Pattern To Trigger […]
Author  Bitcoinist
14 hours ago
The XRP price is getting ready for a significant pump, as a new Cup and Handle pattern has just formed on its chart. A crypto analyst who identified the pattern has released an analysis, predicting that XRP could rise to $3.35, marking a new local high for the cryptocurrency. Cup And Handle Pattern To Trigger […]
placeholder
XRP slides below $2.72 as Elon Musk's DOGE shift focus to SECRipple's XRP saw a 4% decline in the early Asian session on Tuesday following an announcement that the Department of Government Efficiency (DOGE) is targeting the Securities and Exchange Commission (SEC) as the next agency to face its examination process.
Author  FXStreet
14 hours ago
Ripple's XRP saw a 4% decline in the early Asian session on Tuesday following an announcement that the Department of Government Efficiency (DOGE) is targeting the Securities and Exchange Commission (SEC) as the next agency to face its examination process.
placeholder
Dogecoin Whales Vanish: Large Transactions Drop By 88%On-chain data shows that large Dogecoin transactions have seen a sharp drop recently, a sign that whales are no longer active on the network. Dogecoin Whale Activity Has Plunged Since Mid-November As pointed out by analyst Ali Martinez in a new post on X, the Whale Transaction Count has declined for Dogecoin recently. The “Whale […]
Author  Bitcoinist
15 hours ago
On-chain data shows that large Dogecoin transactions have seen a sharp drop recently, a sign that whales are no longer active on the network. Dogecoin Whale Activity Has Plunged Since Mid-November As pointed out by analyst Ali Martinez in a new post on X, the Whale Transaction Count has declined for Dogecoin recently. The “Whale […]
placeholder
Trump meme launches Presidents’ Day airdrop for official product buyersAs the United States celebrates Presidents’ Day, the Trump meme project’s team also announced an airdrop incentive for those who showed their support during the election season. January 17, 2025, saw the launch of the $Trump meme, and it took not just the crypto ecosystem but also the world of trad-fi by storm, onboarding almost […]
Author  Cryptopolitan
16 hours ago
As the United States celebrates Presidents’ Day, the Trump meme project’s team also announced an airdrop incentive for those who showed their support during the election season. January 17, 2025, saw the launch of the $Trump meme, and it took not just the crypto ecosystem but also the world of trad-fi by storm, onboarding almost […]
Real-time Quote