Former Goldman Sachs president and chief economic advisor to the Trump administration Gary Cohn believes that the world will one day employ a global cryptocurrency, but it probably won’t be bitcoin.
“I am not a big believer in bitcoin, but I am a believer in blockchain technology,” he stated in a recent interview. “I do think we will have a global cryptocurrency at some point where the world understands it, and it is not based on mining costs or the costs of electricity or things like that.”
Wall Street Has Big Plans for Bitcoin
Cohn’s former employer Goldman Sachs is taking significant strides in the crypto arena. Just last month the investment bank hired former trader Justin Schmidt to head its new digital asset markets team (part of its securities division). Additionally, the enterprise recently announced it is in the process of building a new bitcoin trading desk, a move that led to a $200 spike in the currency’s price.
“They can do whatever they want,” Cohn said about Goldman’s plans in the crypto space. He may not be a fan of bitcoin, but he admits he has no say in any of the company’s decisions. “They can do whatever’s in their shareholders’ best interest.”
Goldman’s maneuvers have apparently rubbed off on other Wall Street players, as Intercontinental Exchange (ICE) – owner of the New York Stock Exchange (NYSE) – is now working on its own trading platform that will allow users to both buy and hold large stashes of bitcoin.
We Need Something Easier, People!
Gary Cohn expects the global cryptocurrency to be simpler than bitcoin so that everyone who uses it can understand what they’re doing.
“It will be a more easily understood cryptocurrency. It will probably have some blockchain technology behind it, but it will be much more easily understood in how it’s created, how it moves and how people can use it.”
Crossing the Financial Bridge
Bitcoin, while popular among specific groups and individuals, has failed to garner mainstream adoption throughout the globe. This can largely be attributed to the currency’s slow transaction speeds, high trading fees, and general regulatory uncertainty. There is still a wide (and growing) gap between bitcoin use and a global cryptocurrency that boasts the free and smooth processing of monetary transactions that can be widely used by residents of many countries.
Cohn resigned from his role in the White House in early March.
Is Gary Cohn right? Can a global cryptocurrency eventually become a reality? Post your comments below.
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