Bitcoin and the Dollar: Goldman Sachs CEO brings a new perspective

Bitcoin and the Dollar: Goldman Sachs CEO brings a new perspective

In a recent interview with CNBC at the World Economic Forum in Davos, Switzerland, Goldman Sachs CEO David Solomon expressed his belief that Bitcoin is not a threat to the US dollar. Solomon called the original cryptocurrency an "interesting speculative asset" and stressed that its technology could be very valuable to banks.

"I don't think Bitcoin poses a threat to the U.S. dollar," Solomon said, adding that he is a "big believer" in the strength and stability of the U.S. currency. Intensive research is underway at Goldman Sachs into Bitcoin's underlying technology to explore how it could contribute to "less friction in the financial system".

While Solomon sees the potential of Bitcoin, he pointed out that regulations around cryptocurrencies have barely changed. "At this point, from a regulatory standpoint, we can't own, outsource or participate in Bitcoin," he admitted. However, he also indicated that if the situation were to change, he would be open to discussing new options.

According to current data, the US Dollar Index (DXY) is trading at 108.310, up 0.14% over the last 30 days. During this period, the price of Bitcoin has climbed to $102,911, an increase of 7.89%.

Interestingly, in November Goldman Sachs announced plans to spin off its cryptocurrency platform and create a new company focused on trading financial instruments on blockchain networks. Mathew McDermott, global head of digital assets, said the move should be completed within 12 to 18 months, depending on regulatory approval.

So how will Bitcoin and the US dollar evolve in the future? While Solomon is not oblivious to the benefits of cryptocurrencies, he also believes the dollar remains a strong player on the global stage. This debate about the future of currencies and technology in finance remains open and full of possibilities.

*This is not an investment recommendation.

The Coingarage team

Solomon's views are in line with those of Lee Bratcher, president of the Texas Blockchain Council, who recently said that overcollateralized stablecoins pegged to the dollar could strengthen the US dollar's dominance in the global market. "To maintain US hegemony, we need the dollar to remain the world's reserve currency. Stablecoins give people around the world access to the dollar," Bratcher said.