David Solomon, CEO of Goldman Sachs, said Bitcoin could “very well” serve as a store of value similar to gold, but reiterated his cautious stance on the flagship crypto.
In a July 30 CNBC interviewSolomon said that he has never been a critic of Bitcoin, but that he still sees it primarily as a speculative investment with no use case.
However, he acknowledged the potential store of value and said the underlying blockchain technology is “super interesting.” He added that the technology itself can help digitize the financial system and “remove a lot of the friction.”
Under Solomon’s leadership, Goldman Sachs has been proactive in the crypto space. In 2021, the company launched a crypto desk, signaling its commitment to exploring digital assets. At the time, Solomon said Bitcoin would eventually match and overtake gold’s market capitalization, but maintained his cautious view that it was a speculative asset.
Despite the mixed signals, Goldman’s commitment to digital assets is clear. The company plans to launch three tokenization projects by the end of the year, targeting the US and European markets.
In addition, Goldman Sachs is working to create marketplaces for tokenized assets, further strengthening its role in the digital asset space.
Bitcoin reserve
Soloman’s comments come amid growing debate over Bitcoin’s potential to serve as a reserve asset and store of value for individuals, companies and even countries.
Michael Saylor, CEO of MicroStrategy, believes that the first country to start accumulating Bitcoin by issuing fiat money has the best chance of becoming the world’s next superpower. He also emphasized that Bitcoin can help countries – including the US – eliminate their rising national debt within 20 years.
Senator Cynthia Lummis similarly argues that Bitcoin can help the US reduce rising debt and has introduced a new bill that aims to make it a strategic reserve for the country that can only be used to reduce the national debt push.
Lummis reiterated her views on social media on July 30, noting that the US national debt has surpassed $35 trillion and that Bitcoin could help bring it under control.
Politics and Bitcoin
The CNBC hosts emphasized during Solomon’s interview that flagship crypto has become a major political issue, with both Democrats and Republicans focusing on a more supportive stance for the sector.
Former President Donald J. Trump recently headlined the Bitcoin2024 conference, with his speech causing many in the industry to become more optimistic about regulatory clarity in the coming months and years.
Trump has received strong support from both the crypto and technology industries due to the belief that he will implement progressive policies. Industry leaders have publicly supported him and criticized the current administration’s approach.
Meanwhile, Vice President Kamala Harris has reportedly changed the government’s cautious stance on crypto and is in talks with the industry to reach amicable agreements. However, some are skeptical and believe she should take more decisive action, such as changing SEC leadership to change public perception.