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Goldman Sachs CFO Debunks Rumour That the Bank Is Ditching Bitcoin

The Chief Financial Officer of Goldman Sachs has stated, the rumors that the bank was dumping its plan to create a cryptocurrencies trading desk are false.

Marty Chavez, the CFO of Goldman Sachs stated on Thursday that the bank is not having a rethink on its proposed bitcoin derivatives. He revealed this at the TechCrunch Disrupt Conference in San Francisco.

Chavez notes that the bank’s plan to create a derivative for bitcoin was disturbing by its clients’ demands. He went on to explain that the bank is currently on the non-deliverable forwards stage which are over the counter derivatives. Non-Deliverable Forwards will be using the Bitcoin-US dollar established price as its price reference.

An earlier report by Business Insider that the Bank was ditching its plans to trade cryptocurrency had affected the price of bitcoin and other major cryptocurrencies. The price of bitcoin fell to $6,279.08 on Wednesday after the news went viral. As at press time, the price of bitcoin is $6,483.70.

Goldman Sachs has been showing interest in launching a trading platform for cryptocurrencies for a year now. However, Chavez explained that Goldman Sachs is not yet at the stage of deciding on creating a market as principal and physical bitcoin. He added that the bank will only move to that stage only if there exist institutional custodial firms who can guarantee impeccable services.

Goldman Sachs and Cryptocurrency

Coinpedia had reported that Goldman Sachs was planning on holding bitcoin and other cryptocurrencies for funds that were willing to bet on cryptocurrencies.

Goldman Sachs’s interest in bitcoin was rising the prices of bitcoin and the optimism that cryptocurrencies, in general, will be adopting in a global market. The crypto market has experienced interests from institutional since December when bitcoin hit the $20,000 price mark. It would seem that major corporations are not willing to be on the sidelines when the next bitcoin’s bull market emerges.

However, some analysts have come forward with alternative theories to explain the fall of bitcoin’s price on Wednesday. CoinCorner’s co-founder Danny Scott reportedly believes that the fall of bitcoin’s price was linked to the mass sale of bitcoin by a bitcoin whale.

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Ifeanyi

Ifeanyi Egede is an experienced and versatile blockchain/crypto writer and researcher on with tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids. Learn more about how Ifeanyi Egede could be of help to your business.

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