During this period of the descent into hell of the cryptocurrencies prices that lasted more than 18 months, we were able to see how divergent opinions were held on the decentralized digital assets of the powerful American bank. Indeed, while the CEO explained loud and clear that Bitcoin was not a trustworthy currency and we were witnessing a speculative bubble, a few months later banks took advantage of the bear market to set up teams specialized in cryptocurrencies to offer investment services to their investors. While the value of Bitcoin has quadrupled from its lowest level in December 2018 to the current level, the Firm is embarking on a major new project.
Noting a sharp drop in activity and thus a considerable drop in profits, banks are faced with high risks and brutal restructuring plans are considered as the last chance before knowing the point of no return. This is the case, for example, of the German Deutsche Bank, which is preparing to lay off nearly one-fifth of its staff by 2022. Let us remember that a failure of a so-called “systemic” bank, i.e. one that is too powerful to fail, risks destabilizing an entire economy by its very fall. The case of the bankruptcy of Lehman Brothers in 2008 is concrete proof of this.
In order to innovate and strengthen its competitiveness, Goldman Sachs has launched a new cryptography unit to simplify international transactions between customers.
As the new entity is totally independent of the entity trading cryptographic derivatives products, it will seek the various opportunities for the bank to benefit from digital assets. This is the role of project managers who will have been recruited to go “further than ever” with digital assets.
Here are a few words from the job advertisement :
“The project managers of the digital assets team will play a key role in defining the scope and direction of the business,” he added. “In short, we are evolving and looking for some of the most talented people in the world to help us go further than ever.”
Although the details are vague, stakeholders say that Goldman Bank would intend to implement something similar to JPMCoin, which is JPMorgan’s rival digital asset.
David Solomon, CEO of Goldman Sachs, suggested in an interview with Echos that the company would dive deeper into digital assets. According to CoinDesk, Solomon said that Goldman Sachs did research on stable coins and asset symbolization.
The new specific unit organized within this framework of activity is part of Goldman Sachs’ Accelerate team. The new recruits would report to Justin Schmidt, head of the bank’s digital assets unit.
Goldman Sachs’ and most other banks’ ambitions to conquer the cryptocurrencies market date back to the 2017 boom when rumours circulated that banks were organizing the opening of a digital asset trading unit. Currently, the company is trading non-deliverable bitcoin futures, but the volumes have been relatively low, according to a spokesperson.
Given the growing number of multinationals integrating blockchain as part of their services, it would not be surprising to learn that other more or less renowned banks, such as Goldman’s, are taking a closer interest in the blockchain protocol to develop their transaction methods.
Passionate about digital technologies and thanks to my experiences as advisor in the crypto sector, my goal is to popularize this fascinating but nevertheless vague world to the general public as simply as possible