24.10.2021

Goldman Sachs Bank wants to enter the cryptocurrency market

It seems that the rise in the price of Bitcoin is becoming one of the most discussed issues even among the top management of large American banks and government agencies.

On the eve of the representatives of the Goldman Sachs bank announced the beginning of the study of the crypto market with the possibility of investing in digital assets. In addition, the mayor of Miami also announced his desire to invest part of the city budget in Bitcoin. This means that another boom in the popularity of cryptocurrencies is beginning to emerge, and now the state of blockchain assets looks much more confident in comparison with the indicators of 2017 during the previous stage of growth.

First, a little clarification: cryptocurrencies are not investment vehicles that are universally approved. This is due, among other things, to the early days of the industry, when banks actively criticized blockchain coins, calling them a weapon of speculators and fraudsters. In addition, representatives of various government departments regularly talk about the connection of cryptocurrencies with money laundering, payment for illegal goods and other sins.

Against this backdrop, many retail investors and institutions are still afraid to get involved with the cryptocurrency industry, because they have not figured out how the blockchain works and, taking into account old criticism, they see some kind of trick in coins. Fortunately, the situation is changing rapidly.

First of all, it is worth remembering large companies that have already invested hundreds of millions of dollars in Bitcoin. Now banks are also getting involved in the topic. For example, the day before it became known about Morgan Stanley’s investment in MicroStrategy, which is actively replenishing its stocks of coins.

Since these organizations are large and well-known around the world, their attention to Bitcoin is significant news for the cryptocurrency industry as a whole.

Who buys bitcoins

Goldman Sachs has issued a request for information (RFI) to investigate the storage of digital assets, according to an anonymous source at the bank. The insider is confident that the bank’s digital asset initiative is “part of a broader digital strategy” endorsed by the United States Comptroller’s Office (OCC), CoinDesk reports.

The day before, there was a real tectonic shift in the adoption of cryptocurrencies – the cryptocurrency company Anchorage received conditional OCC approval to become a national digital bank and at the same time “unambiguously” meet the definition of a “qualified custodian” of digital assets. The firm’s president, Diogo Monica, said in an interview that this regulatory approval will attract many large and risk-averse investors to the cryptocurrency industry.

When Monica was asked about the three major US banks JPMorgan, Goldman and Citi, he said he was “actively negotiating” with all of the listed institutions. Hence, we can conclude that plans to work with cryptocurrencies at such a high level have long been formed in the circles of bank management.

There have been many rumors that Goldman Sachs might offer its clients something like primary brokerage services using cryptocurrencies. However, the insider said that the bank is considering creating an infrastructure for storing digital assets at the request of large investors.

Accordingly, the connection to the cryptocurrency niche in this way will be even more ambitious than previously thought. If the bank’s plans are implemented, it will accept cryptocurrency for safekeeping. That is, be responsible for the safety of coins and, in addition, make money on it.

Another piece of news concerns the Miami City Hall: the mayor of the city, Francis Suarez, announced the possible purchase of bitcoins. At the same time, the investment supposedly should not become a personal investment of Suarez, but a transfer of Miami treasury funds into bitcoins. Naturally, we are talking about a very small part of the budget, because BTC is still considered a very risky investment. Here’s a quote from Suarez’s official Twitter account.

We hope to make our city of Miami one of the most progressive and technologically advanced cities.

Suarez is already complaining that he didn’t buy the cryptocurrency before. The Mayor of Miami said the city’s reserves could “double” if he had made the commitment earlier, according to CryptoSlate. He also added that Miami is even considering allowing citizens to pay taxes and fees in Bitcoin.

This news proves that the attitude of major players towards cryptocurrencies has changed significantly in recent years. Now Bitcoin is seen as a full-fledged investment tool – and even at the level of a large city.

We believe that if Miami City Hall really invests in cryptocurrency, it will be a new stage for the development of blockchain assets. In addition, other governments are also likely to follow suit. After that, it is unlikely that someone will be able to call Bitcoin and other coins a tool exclusively for speculation.

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