Goldman Sachs is considering creating its own cryptocurrency. Having recently appointed a new head of digital assets, the company indicated a possible collaboration with other companies, including JPMorgan and Facebook. JPMorgan has created the JPM coin and Facebook has proposed the Libra cryptocurrency project.
Goldman Sachs’ Cryptocurrency Plan
Global investment bank Goldman Sachs has recently appointed a new head of digital assets, Mathew McDermott, a managing director who ran the investment bank’s internal funding operations. He has now revealed that Goldman is exploring creating its own cryptocurrency, CNBC reported on Thursday, quoting the new digital assets chief as saying:
We are exploring the commercial viability of creating our own fiat digital token.
However, McDermott added that “it’s early days as we continue to work through the potential use cases.” He is expanding his team at Goldman Sachs, reportedly hiring Oli Harris, JPMorgan Chase’s head of digital assets strategy. Harris was involved in JP Morgan’s cryptocurrency, the JPM coin, and was also a vice president in charge of Quorum, the ethereum-based blockchain platform that underpins the JPM coin. The coin, pegged to the U.S. dollar, enables the instantaneous transfer of payments between institutional clients, JPMorgan explained on its website.
The new digital assets head said that it is crucial to build “consensus with other banks, institutional investors and regulators,” the publication noted. He believes that “The technology will only take off when it gains a critical mass of users across the world of finance” and “industry consortiums are the best way forward.”
McDermott further explained that he “spends a lot of time talking to other companies, including JPMorgan and Facebook.” The social media giant has proposed a cryptocurrency project called Libra, which recently updated its plans to better comply with regulatory requirements. According to CNBC, he indicated: