David Solomon’s Stance on Bitcoin

David Solomon, the CEO of Goldman Sachs, refrains from speculating on Bitcoin or other crypto assets.

“I’ve always said I think it’s a speculative investment,” Solomon expressed in a CNBC interview during the Summer Olympics in Paris. “I don’t see a real use case.”

Solomon highlighted the intriguing underlying technology of crypto, noting its potential to streamline the financial system as it digitizes.

When asked if a reserve similar to gold could be a store of value for Bitcoin, he acknowledged, “there very well could be a store of value case.”

In 2021, Solomon stated, “Bitcoin is on an inevitable path to have the same market capitalization and then a higher one than gold.”

The price of Bitcoin has surged approximately 490% over the last five years, trading around $66,237, while gold has only risen about 67% in the same period.

Goldman’s Role in Crypto

Despite Solomon’s cautious comments, 2024 appears poised to be significant for Goldman Sachs’s crypto ventures. Earlier, the bank participated in tests on Canton Network, designed for institutional assets by Digital Asset Holdings.

During the Digital Asset Summit in London, Mathew McDermott, Goldman’s head of digital assets, shared that the company is actively investing in the digital asset sector, particularly in bankruptcy claims and other investment opportunities.

With escalating interest from hedge fund clients in crypto products, Max Minton, Asia Pacific head of digital assets at Goldman Sachs, commented that many clients are exploring this space.

On July 10, reports emerged that Goldman Sachs plans to initiate three tokenization projects targeting the U.S. and European markets by year’s end, alongside setting up marketplaces for tokenized assets.

Solomon remarked on central banks’ exploration of digital currencies, discussing their application in local markets and their potential impact on global payment systems, alongside the ambiguous future of cryptocurrencies like Bitcoin as a store of value.