The spectre of cryptocurrency is spurring banks into action

Today, banks are enthusiastic about digital currency; yesterday, they were writing it off.

Goldman Sachs is weighing the idea of launching a cryptocurrency of its own, CEO David Solomon said late last week.

“Assume that all major financial institutions around the world are looking at the potential of tokenisation, stablecoins and frictionless payments,” he said.

It’s kind of funny because, in early 2018, Goldman Sachs shrugged that “in most areas of the world where we have well-functioning fiat currencies and reliable banking systems, there just doesn’t seem to be a need for digital currencies.”

But now the bank “absolutely” could follow in the footsteps of JP Morgan by launching its own cryptocurrency, Solomon said.

Speaking of which, JP Morgan’s stance on Bitcoin went from “If you’re stupid enough to buy it, you’ll pay the price someday” to the analysis of Bitcoin’s price as an asset with intrinsic value to launching its own cryptocurrency in the space of just a couple of years.

“We’re going to have competitors, whether it’s a cryptocurrency competitor or another FinTech competitor. We’re going to have competitors,” JP Morgan CEO Jamie Dimon said last Thursday. “I tell our people, don’t guess, you know they’re there, you know they’re coming, you know they want to eat our lunch. Assume it.”

Of course, in September 2017 he was saying he’d fire any employees who went long on Bitcoin for their sheer stupidity.

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Source: The spectre of cryptocurrency is spurring banks into action | Finder