Goldman Sachs CEO David Solomon dismissed concerns that Bitcoin poses a risk to the dominance of the U.S. dollar, describing the cryptocurrency as an “interesting speculative asset” during a January 22 interview with CNBC at the World Economic Forum in Davos, Switzerland.
Bitcoin’s Technology Seen as Valuable for Banks
While Solomon reaffirmed his belief in the strength of the U.S. dollar, he highlighted Bitcoin’s underlying blockchain technology as a significant area of interest for Goldman Sachs.
“We are conducting research on its underlying technology to explore ways to reduce friction in the financial system,” Solomon said, describing this work as “super important.”
However, regulatory constraints remain a major barrier for banks to directly interact with Bitcoin. “At the moment, from a regulatory perspective, we can’t own, we can’t principal, we can’t be involved with Bitcoin at all,” he said, adding, “If the world changes, we can have a discussion about it.”
Stablecoins and Dollar Dominance
Solomon’s comments align with recent remarks by Lee Bratcher, president of the Texas Blockchain Council, who argued that stablecoins—dollar-pegged digital assets—can bolster the U.S. dollar’s position as the global reserve currency.
“If we want to maintain U.S. hegemony, stablecoins must proliferate because they provide global access to the dollar,” Bratcher said.
Bitcoin and the Dollar’s Performance
Bitcoin has seen a 7.89% rise over the past 30 days, trading at $102,911, according to TradingView data. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against other major currencies, has climbed to 108.310, marking a 0.14% gain over the same period.
Goldman Sachs has been actively exploring blockchain and cryptocurrency-related opportunities. In November 2024, the bank announced plans to spin off its cryptocurrency platform into a standalone company dedicated to developing and trading blockchain-based financial instruments.
Mathew McDermott, Goldman’s global head of digital assets, said the spinout is expected to be completed within the next 12 to 18 months, pending regulatory approvals.
While Solomon doesn’t view Bitcoin as a threat to the dollar, his acknowledgment of blockchain’s potential signals growing interest among major financial institutions. As regulatory frameworks evolve, banks may play a more direct role in adopting blockchain technologies for efficiency and innovation in the financial system.
