“Bitcoin is ‘not for me’ but it’s too ‘arrogant’ to say it won’t have a future.”
“If you could go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency?”
Lloyd Blankfein, the CEO of Goldman Sachs while addressing at The Economic Club of New York calculatedly made his point of not being comfortable towards virtual currencies but not completely denying about its future presence though.
Blankfein shows the positivity towards cryptocurrencies for the future and expresses his anticipation and progressiveness. Though several financial connoisseurs are contemplating on the facts and figures if cryptocurrencies, like Bitcoin, would become mainstream, Blankfein said: “…it’s not for me, I don’t do it, I own no Bitcoin. Goldman Sachs as far as I know… has no Bitcoin, but if it does work out, I could give you the historical path why that could have happened.” Formerly during the discussion, he explained that “if the world could move from gold to fiat currencies, where the worth of the currency is because it is backed by the government, then it is possible that a consensus currency could also exist.”
Last October, Jamie Dimon, Chairman and CEO of JP Morgan Chase had called all cryptocurrencies fraud in his aggression and said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.” Blankfein, however, did not want to disdain cryptocurrencies downright and exclaimed, “I’m not in this school of saying… because it’s uncomfortable with me, because it’s unfamiliar, this can’t happen, that’s too arrogant.”
Bitcoin has been criticised for being a speculative bubble especially after it hit a record high of nearly $ 20,000 or approximately Rs 13.6 lakh last year and subsequently fallen to below $ 7,000 or Rs 4.75 lakh.
Although Dimon accepted the worthiness, validity and positive future of blockchain technology behind bitcoin, but he does not recognize the importance of “non-fiat” digital coins, that is, digital currencies that are not backed by a government.