The prestigious US-based multinational investment bank, Goldman Sachs, is examining to create its own cryptocurrency with the view of developing a stablecoin; this revelation was made by the bank’s newly appointed Head of Digital Assets, Mathew McDermott while participating in a recent chat with CNBC today.
McDermott, aged Forty-Six, is a financial analyst with decades of working experience in the finance industry, he joined Goldman Sachs in 2005 and about a month ago was appointed the new head of Digital Assets. He disclosed that the financial service provider company is in the early stage of researching into the commercial viability of developing its own native digital fiat token.
The Assets head explained that Goldman Sachs is enthusiastic about exploring and making blockchain-related technological advancement and that the company has the vision to accomplish a financial system where all assets and liabilities will be blockchain-based in the next ten years.
According to McDermott, the creation of “huge efficiencies” could be achieved by digitalizing everything while services such as loan origination, securitization, and debt issuances could also be improved through technological advancements.
McDermott went on to elaborate that he is working on doubling the team he oversees and that he has been contacting experts in Europe and Asia.
McDermott, to realize the stablecoin on time, hired Oli Harris, a tech expert who played a major role in the successful launch of JPMorgan‘s native token, JPMCoin. However, it is important to mention that Goldman Sachs has for a long time been considering stepping up with blockchain but the financial company has been skeptical about traditional cryptocurrencies.
Invariance to this, McDermott during the interview averred that there have been increased interests in cryptocurrency among the company’s customers, the analyst reiterated that he feels there is a current rejuvenation of interest in cryptocurrency among clients in the banking industry.
Banks Eyeing Cryptocurrency
Banks are speedily joining the cryptocurrency industry the moment they discovered big banks like JPMorgan are leading in the space. Also, China is preparing to launch a digital version of Yuan named Digital Currency/Electronic Payments (DCEP) project.
According to a report by Caijing, China’s largest banks are already piloting the test version of the digital currency. Once launched, DCEP stands to create a revolution in the banking industry.
China has been working on the digital Yuan since 2014, and it is geared towards curbing crime and assisting central banks in controlling money in circulation.
