The CEO of Goldman Sachs sees Bitcoin as a speculative asset, not a threat to the US dollar

Key Takeaways

Goldman Sachs CEO David Solomon sees Bitcoin as a speculative asset, not a threat to the US dollar.
Goldman Sachs is exploring blockchain technology applications but there are regulatory restrictions in crypto involvement.

Goldman Sachs CEO David Solomon dismissed Bitcoin's ability to challenge the dominance of the US dollar, describing it as an “exciting speculative asset.”

“At the end of the day, I'm a big believer in the US dollar. I think the US dollar is very important,” Solomon said said in a Wednesday interview with CNBC's Squawk Box when asked about Bitcoin's threat to the national currency.

“Bitcoin is an interesting speculative asset. I don't think there are many words to say,” the Goldman boss said. “I do not see Bitcoin as a threat to the US dollar. “

Solomon's comments come at a time when the crypto community is eager to see if President Donald Trump will follow through on his promise to establish a national Bitcoin repository, a key pledge of his re-election campaign.

Asked whether Goldman Sachs' approach to crypto assets is going to “fundamentally change” under the Trump administration, Solomon said the bank has already been fundamentally engaged and exploring the potential applications of blockchain technology in finance.

“The core technology is something we've spent a lot of time on. This is something we are using, testing to create less fragile financial systems,” Solomon said.

The CEO noted regulatory restrictions on the bank's crypto involvement. “Right now, from a regulatory perspective, we can't own, we can't principle, we can't be involved in Bitcoin,” Solomon said, indicating possible changes if regulations change.

Speaking at a Reuters The next conference Last month, Solomon said that Goldman Sachs' current ability to participate in spot trading for Bitcoin and Ethereum is limited due to regulatory restrictions.

If the regulatory environment improves, the bank would assess the opportunity to engage in market making for these funds, he said.

Goldman Sachs now holding $461 million in BlackRock's iShares Bitcoin Trust, according to a recent regulatory filing. The bank also holds commitments in funds managed by Fidelity, Grayscale, Invesco/Galaxy, WisdomTree, and Ark/21Shares.