Goldman Sachs’ CEO Explains Why He Hasn’t Closed the Door on Cryptocurrency Ventures

Goldman Sachs’ CEO Lloyd Blankfein has a complicated relationship with cryptocurrency, frequently making contradictory statements about the future of digital currencies.

In an interview with Bloomberg’s Editor-In-Chief, John Micklethwait, Blankfein further elaborated his views on Bitcoin and cryptocurrencies in general.  His latest comments can be defined as very positive, as he spoke of Bitcoin potentially being the next step in the evolution of money. He tempered this claim by reaffirming his uncertainty about Bitcoin, saying that although he is uncomfortable about Bitcoin, he was also initially uncomfortable about cellphones.  

His comments on Bitcoin potentially being the next evolution of money is contradictory to his statement made on Bitcoin in November, when he called it a fraud.  He elaborated on this claim saying that its volatility negates its value as a store of value.

Blankfein notably said that he wouldn’t allow his own personal opinions to dictate the actions taken by Goldman Sachs, which much like him has a confusing relationship with the cryptocurrency markets. 

Reports that Goldman Sachs was planning on opening a Bitcoin trading desk have been floating around for months, but the company sent mixed signals about this until last month, when they confirmed that they would be opening a trading desk as well as a Bitcoin linked futures contract.

Blankfein has learned from his past mistakes of falsely predicting revolutionary technologies as being fads.  When cell phones were first introduced, Blankfein expressed confusion on why anyone would want to use them saying, “‘there’s 10 phone booths on every corner…this is a fad, nobody’s going to carry a cell phone,’ so I just passed on that whole thing.”

Although he himself does not own or use any cryptocurrencies, he did say, “If it does work out, I could give you the historical path why that could happen.”