Recently a French news source Les Echos did an interview with the CEO of Goldman Sachs, asking him about cryptocurrencies and the companies plans regards them. He revealed that they are working on and researching asset tokenization and stablecoins in general. They are looking at JPMorgan Chase‘s version of a cryptocurrency and they “absolutely” would follow in launching a similar cryptocurrency.
“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments,” he commented.
He believes that that is the direction in which the payment system will go, hence stablecoins and asset tokenization. With an emphasis on “he believes”. Solomon commented this while he was asked to comment on the Facebook Libra project, which he refused, but answered: “I find the principle interesting.”
Crypto Regulation Is Coming
When asked about cryptocurrency regulation, he said that “a change is coming for sure”. What does he mean by that, we can only guess. It’s been already known for quite a while that multiple G-20 meetings have discussed the regulation of cryptocurrencies, but with no outcome. Possibly, this time they want to put a final decision on this issue.
“I think regulators around the world are watching what’s going on. They wonder how it will work and are very attentive to payment flows,” Solomon explained.
It is funny how companies quickly change their mindsets. Just recently in January, JPMorgan Chase said that crypto would only have value in a dystopian economy. Now they are in the works of launching their JPM Coin. It will run on Quorum which is a private version of Ethereum.
The bank developed it in conjunction with EthLab. The main intent for this bank-like crypto is to settle a portion of transactions between clients of its wholesale payments business. JPMorgan revealed that they are beginning tests with clients earlier this week.
Well not much for the banks, but this rather shows more about the great and interesting future we have ahead of us. Banks with these moves have acknowledged cryptocurrencies as such in the eyes of people who are not familiar with this matter. Payment systems will change, banks will try to offer something similar to cryptocurrencies, but eventually, people will realize – why do we need third parties, if we can do everything peer-to-peer?