As the overall crypto market cap reaches $1.75 trillion, Wall Street giant Goldman Sachs says the adoption of digital assets is just getting started.
In a Reuters’ report on Bitcoin and crypto assets, Goldman Sachs president and chief operating officer John Waldron says that the growth of e-commerce amid the Covid-19 pandemic will lead to an “explosion” in cryptocurrency use.
- “The pandemic has been a significant accelerant. There is no question in our mind there will be more digital commerce … and (use of) digital money.”
Waldron adds that the number of customers showing interest in Bitcoin itself is growing, forcing the bank to try and overcome the regulatory hurdles facing US citizens who wish to invest in the flagship cryptocurrency.
- “Client demand is rising. We are regulated on what we can do. We continue to evaluate it… and engage on it.”
Waldron also says the bank is exploring new Bitcoin products and offerings after recently restarting its cryptocurrency trading desk. Goldman initially announced plans to open a cryptocurrency trading desk during the previous bull run, but shelved those plans in September of 2018 citing an uncertain regulatory environment.
The Goldman Sachs executive says the bank is in discussions with regulators regarding how to oversee traditional financial institutions handling digital assets.
During his senate confirmation hearings, the incoming U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler promised to offer regulatory clarity as he acknowledged that cryptocurrencies have revolutionized the payments space.
- “Bitcoin and other cryptocurrencies brought new thinking to payments but raised new issues of investor protection we still need to attend to. It’s important for the SEC to provide guidance and clarity. Sometimes that’s a clarity that will be a thumbs up, but even if it’s thumbs down, it’s important to provide that.”