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Former Goldman Sachs CEO Issues Warning Against Bitcoin

Former Goldman Sachs CEO Issues Warning Against Bitcoin
  • Lloyd Blankfein says that regulators should be concerned about the recent Bitcoin price rally.
  • Moreover, Blankfein is far from persuaded that Bitcoin is an ideal store of value.
  • Meanwhile, Goldman Sachs may soon enter the cryptocurrency custody industry.

Lloyd Blankfein, a former Goldman Sachs CEO, says that regulators should be concerned about the recent Bitcoin price rally.

Blankfein argued that Bitcoin presents barriers to financial regulation. However, he explains that regulatory bodies might soon be unable to manage the finance sector. That is, if they allow the leading crypto asset to keep thriving. In his opinion, regulators need to be ill at ease with Bitcoin.

While speaking on CNBC’s Squawk Box program, Blankfein said that crypto assets are undermining regulators. More so, he specifically referenced Bitcoin’s relative anonymity. He added that the asset’s use as a medium of exchange makes it ideal for criminal use.

However, Blankfein’s claim seems to contradict known facts. This is since authorities have previously tapped blockchain’s transparency to track crypto use by criminals. Yet, he claimed that you don’t know “whether or not you’re paying the North Koreans, or Al-Qaeda, or the revolutionary guard”.

Moreover, the Goldman Sachs former chief agitated that regulators should not allow Bitcoin. Neither should they let other crypto assets continue to grow and thrive in their current form, Blankfein asserts.

Blankfein said,

If I were a regulator, I would be kind of hyperventilating at the success of [Bitcoin] at the moment, and I would be arming myself to deal with it.

Also, Blankfein is far from persuaded that Bitcoin is an ideal store of value. He disapproves of the asset’s price volatility, as well as the technological literacy necessary to handle crypto.

Blankfein proposed a limit on several key freedoms enabled by Bitcoin to manage the asset. However, this could have a negative effect. Like, impacting the asset’s action mainly on its market demand.

Meanwhile, Goldman Sachs, one of the largest US banks, will soon become a cryptocurrency industry custodian.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.