Coming as an interesting development in the crypto sphere, Goldman Sachs is carrying out broad research on tokenization. The development is first reported by France’s Les Echos newspaper on June 27. Goldman Sachs’ chief executive divulged the aforementioned development in ana interview with the French newspaper.
David Solomon mentioned that he considers global payment systems are heading in the direction of stablecoins. Notably, stablecoins are cryptocurrencies or digital assets pegged to fiat assets like the U.S. dollar or European Union’s Euro.
Stablecoins, Cryptocurrencies & Tokenisation
Interestingly, Solomon mentioned that his corporation finds the idea to be appealing. When asked whether Goldman Sachs will follow JPMorgan Chase in launching its own virtual currency, Solomon commented to suppose that all the key financial establishments around the planet are gazing at the prospective of stablecoins, tokenization, and effortless payments.
Moreover, in the interview, Solomon forecasted that regulations will alter in reply to digital assets. Nonetheless, he mentioned that he doesn’t believe that new members in the crypto ecosystem will compel banks to shut.
Solomon further added that they will have to progress. The reason behind this is that the trades connected with the payment flows will become not as much gainful. However, he added that there are a lot of additional basis why banks must stay inventive, or else they will fade away.
JP Morgan Coin & Facebook Coin Libra
Solomon also propounded that big technology companies like Facebook would like to keep away from the regulatory limitations that banks face, making it more probable that they would attempt to enter into partnerships than develop into financial establishments themselves.
Earlier this week, reports proposed that JPMorgan Chase is mulling over piloting its own cryptocurrency by the ending of this year.
Earlier in the month of April, Solomon firmly repudiated that Goldman Sachs ever had plans to open a cryptocurrency and digital asset trading desk during a hearing before the US House of Representatives Financial Services Committee.