In a recent interview with CNBC, former Goldman Sachs president Gary Cohn said that he thinks the world will one day have a global cryptocurrency. In addition to his former role at the major investment bank, Cohn previously served as chief economic advisor advisor to President Trump before resigning in March 2018.

Gary Cohn believes in blockchain, not Bitcoin

“I’m not a big believer in bitcoin. I am a believer in blockchain technology,” said Cohn, while discussing the digital currency landscape.

Cohn believes that Bitcoin is burdened by limitations that make it an unlikely choice for global adoption. Included in these limitations is the currency’s scaling issues, which make Bitcoin transactions slower and more expensive as adoption grows.

While pioneers within the industry are currently developing solutions to the scaling issues that plague Bitcoin and other digital currencies like Ethereum, Cohn believes Bitcoin may just be a stepping stone to a future digital currency.

Here, Cohn expressed praise for the potential of blockchain technology to facilitate a global digital currency. While blockchain first emerged alongside Bitcoin, it has since taken on a life of its own through newer digital currencies and fintech inventions.

“I do think we will have a global cryptocurrency at some point where the world understands it and it’s not based on mining costs or cost of electricity or things like that,” he said.

Goldman Sachs entering the digital currency landscape

While Cohn is no longer a shareholder of Goldman Sachs, his forward-looking statements on the industry follow recent news from Goldman Sachs. Recently, Goldman Sachs hired its first digital currency trader.

The news arrived amidst rumours that Goldman Sachs intends to launch a digital currency trading desk. With Justin Schmidt joining the investment bank’s securities division as vice president and head of digital asset markets, rumours of Goldman’s interest in the digital currency industry seemed increasingly accurate.

On May 2nd, 2018, a report from the New York Times confirmed that Justin Schmidt would be serving on the bank’s foreign currency desk for the time being, reportedly due to Bitcoin’s similar trading movements as currencies in emerging markets.

Goldman Sachs will not be buying and selling actual Bitcoins just yet, although it is exploring the possibility if it is able to obtain regulatory approval in the state. In the near future it will begin trading with clients in contracts linked to Bitcoin’s price.

 

 

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