Major banks have always had a love-hate relationship with Bitcoin and other cryptocurrencies. As this new form of money is a direct threat to traditional banking, most institutions stay away from Bitcoin. In some cases, they even lock customers’ bank accounts for buying or selling Bitcoin with their own money. Goldman Sachs is the first major entity to finally buckle under the pressure. The company is looking to launch a new service allowing customers to trade Bitcoin and perhaps other cryptocurrencies as well.
Goldman Sachs Makes a Bold Decision
After years of ignoring and attempting to discredit cryptocurrencies, most major banks find themselves at an awkward crossroads. Either they continue to bash Bitcoin in the style of Jamie Dixon, or they start to get in on the action. While it is true some banks probably have a stash of bitcoins already for obvious reasons, Goldman Sachs is trying to take things to a whole new level. In fact, the company may launch a Bitcoin trading service in the near future.
A lot of people are taken aback by this sudden change of heart by the financial institution. After all, it was thought highly unlikely that a traditional bank would ever get involved with cryptocurrency in an active manner. Then again, with firms such as Deloitte publicly showing their support for Bitcoin, this change was inevitable. Knowing Goldman Sachs is exploring the launch of a Bitcoin trading operation is something a lot of cryptocurrency enthusiasts will see as justice served.
Indeed, a lot of the bank’s clients have expressed their interest in obtaining cryptocurrency of late. As a result, the bank had to come up with a viable and convenient solution to address customer needs. That is much easier said than done, to say the least. It is unclear how the company plans to achieve this goal exactly. Moreover, it remains unclear if this will be a full-fledged exchange platform or just a service available to Goldman Sachs customers only. The latter option seems more likely right now, and may even result in an OTC trading operation.
This contrarian stance by Goldman Sachs will certainly score some brownie points among members of the crypto community. Morgan Stanley and JPMorgan Chase have rubbed cryptocurrency enthusiasts the wrong way on more than one occasion over the past few years. Goldman Sachs has always been a “target” for Bitcoin in terms of making financial institutions obsolete, but it may turn out to be a more-than-valuable partner to make cryptocurrency mainstream in the future. Collaboration is always the first and best option, rather than just “going to war”.
It is evident the Bitcoin price action has gotten so interesting even major banks are willing to shift their game plans all of a sudden. Although this venture remains shrouded in mystery for the time being, it is still an important development in the bigger scheme of things. There is a possible world in which banks and cryptocurrency can work together without attempting to exert control or stifle innovation. Only time will tell if things will ever reach that point, though.
Financial institutions are facing a lot of pressure right now, which forces them to make unusual decisions. A lot of companies struggle with earnings and there are very few traditional opportunities left to explore right now. In the US, people are actively moving their retirement savings over to Bitcoin IRA services as a way to ensure they can live comfortably in the future. A major power shift will occur in the coming years; that much is rather evident right now.