Goldman Sachs CEO: The global payment system is moving towards a stable currency, and the future will depend on the blockchain.

On June 27th, Goldman Sachs CEO David Solomon told France's Les Echos that the group is "widely researching" on tokenization. He believes that the future of the payment system must depend on the blockchain, and Goldman Sachs "absolutely" hopes to catch up with the trend of the blockchain.

Earns Goldman Sachs

David Solomon said he believes the global payment system is moving in the direction of stable currencies – cryptocurrencies linked to statutory assets such as the US dollar.

Although he did not confirm whether Goldman Sachs had discussed with Facebook about the upcoming Libra cryptocurrency and Calibra wallet, Solomon said his company felt the concept "very interesting."

When asked if Goldman would follow JPMorgan's launch of its own virtual currency, Solomon said:

“Assume that all major financial institutions around the world are concerned about the potential of tokens, stable currencies and frictionless payments.”

In the interview, Solomon also expects that regulation will change with the emergence of virtual currency, but he said he does not believe that new players in the cryptocurrency field will force banks to close. He added:

“It’s undeniable that Goldman Sachs will have to evolve, because transactions related to payment flows will become less profitable. But there are still many reasons why banks must remain innovative, otherwise they will disappear.”

Solomon also said that technology giants such as Facebook want to avoid the regulatory restrictions faced by banks, making them more likely to try to establish partnerships with banks rather than becoming financial institutions themselves.

Earlier this week, there were reports that JPMorgan Chase will begin piloting its own cryptocurrency by the end of the year.

In April of this year, Solomon categorically denied that Goldman Sachs had planned to open an encryption trading platform at the hearing of the US House Financial Services Committee.

In addition, according to CNBC, according to a person familiar with Goldman Sachs, the company believes that large financial institutions will seek to mark their business digitally to reduce costs and better serve customers.

Goldman Sachs spokesman Patrick Lenihan declined to comment on Solomon’s comments.

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