When the crypto industry saw the light back in 2009, banks and other financial institutions visualized Bitcoin as a mere piece of technology used by criminals on the darknet. Just less than four years ago when almost every bank, banker and financier was either laughing at Bitcoin or had never heard about it.
However, the notion has changed in the last few years and many banking behemoths now identify the once pointless Bitcoin and its associated technology and ecosystem, as a significant force for payments in the future.
As banks across the globe start liking into the concept of Central Bank Digital Currencies, the clash between cryptocurrencies, blockchain and the traditional banking system has subdued. The biggest turnaround in this scenario has been U.S. banking giant JPMorgan Chase.
The Wall Street bank’s CEO Jamie Dimon once berated Bitcoin as a fraud only for the bank to later deploy its own cryptocurrency a few years later.
Now, banking giant Goldman Sachs is also taking an interest in cryptocurrencies as per a recent invitation stating that the investment bank is set to host a conference call regarding Bitcoin, gold, and inflation.
Goldman Sachs looks to Bitcoin
According to the invitation, the event is set to take place on May 27th and is dubbed the “US Economic Outlook & Implications of Current Policies for Inflation, Gold, and Bitcoin.”
There are no in-depth details about the content of the conference, but a Forbes report suggests that the motive here is to discuss the impact of the current central bank policy and the risk of monetary inflation on assets like Bitcoin and gold.
This year has seen some significant events shake up the global economy, with the Federal Reserve printing over $3 trillion. According to multiple experts, these measures taken by the government could negatively impact inflation rates in world economies.
Most hard money advocates believe this is the right time for scarce assets like Bitcoin and gold to thrive. According to major investor and philanthropist Paul Tudor Jones, bitcoin will be playing a “growing role” as a hedge against worsening economic crisis that has resulted in growing unemployment rates.
“The Great Monetary Inflation,” as Jones calls it, will be “an unprecedented expansion of every form of money, unlike anything the developed world has ever seen.”
Even the popular novel Rich Dad Poor Dad’s author, Robert Kiyosaki, has previously warned that investors should avert buying cash because of its depreciating value and focus on accumulating gold and Bitcoin.
Goldman Sachs’ conference call appears to be based on such sentiments, but what’s interesting to note is the fact that the event will be hosted by Chief Investment Officer at Goldman, Sharmin Mossavar-Rahmani. Back in 2018, Rahmani was a vocal Bitcoin critic, she said:
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected.”
But it is yet to be seen whether her opinions have changed over the years.
The news comes days after JP Morgan opened accounts for two cryptocurrency exchanges namely Coinbase and Gemini. This is a great milestone for the crypto industry itself as this paves the path for new possibilities where banks work hand in hand with crypto-based companies.
While banks now try to fit cryptocurrencies and blockchain in their systems, it is an exciting time we find ourselves in. Legitimacy and recognition have been granted to this space, but it remains to be seen how things turn out from here.