Bitcoin Not a Threat to the US Dollar

In a recent interview with CNBC’s Squawk Box, Goldman Sachs CEO David Solomon shared his perspective on Bitcoin and its relationship to the US dollar. He also offered insight into the financial giant’s stance on crypto.

Solomon, who is known for his cautious approach to digital assets, addressed concerns about Bitcoin’s potential to disrupt traditional currencies. 

Goldman Sachs CEO Talks Bitcoin, Blockchain, and Regulatory Concerns

When asked whether Bitcoin could pose a threat to the US dollar, Solomon was quick to say no.

“I don’t see Bitcoin as a threat to the US dollar. At the end of the day, I’m a big believer in the US dollar,” he said. 

He went on to describe Bitcoin as “a speculative asset, an interesting speculative asset,” acknowledging its presence in the market. Despite his relatively skeptical view on Bitcoin, Solomon did admit the importance of blockchain technology. Blockchain is the underlying infrastructure of Bitcoin and other cryptocurrencies.

 “The underlying technology is something we spend a lot of time on. It’s something that we’re utilizing and testing to create less friction in the financial system,” he explained. 

This shows Goldman Sachs’ recognition of blockchain’s potential to transform financial services. The bank has been exploring blockchain applications to streamline processes like cross-border payments and securities settlement.

However, while Solomon sees the technology as valuable, he clarified that, from a regulatory standpoint, Goldman Sachs is still not allowed to own or engage principally with Bitcoin. The CEO hinted that the bank’s stance could evolve if regulatory frameworks around crypto were to change.

“If the world changed, you and I could have a discussion about it,” he stressed.

This is in line with the CEO’s previous comments on the topic. He has confirmed that the investment bank is open to engaging with cryptocurrencies. However, this is possible only if the regulatory environment changes under President Trump. 

Nevertheless, the bank does have substantial investments in Bitcoin ETFs. A filing with the SEC from November 14 reveals that Goldman Sachs holds approximately $718 million across eight different ETFs. This includes a $461 million investment in BlackRock’s Bitcoin ETF, among others.

In November, it was also reported that Goldman Sachs plans to spin off its digital assets platform into a new blockchain-based company within 12-18 months.