Bitcoin
Can cryptocurrency capture Wall Street’s mind? The eyes of large American financial companies toward cryptocurrencies such as bitcoin are changing favorably. There is also a growing likelihood that conservative Wall Street financial companies will trade in bitcoin.
The US investment bank (IB) has begun to pay attention to the launch of bitcoin-related financial products. Goldman Sachs was the first place to fire the flare.
According to Reuters and Bloomberg news on the 1st (local time), Goldman Sachs recently decided to re-install the’Cryptocurrency Desk’, a department dedicated to cryptocurrency transactions. Cryptocurrency Desk plans to start working as early as mid this month and then sell cryptocurrency-related financial products such as bitcoin futures trading.
Goldman Sachs installed a cryptocurrency desk in 2018 when the bitcoin craze blew, but in that year, after the price of cryptocurrency plummeted, investors stopped operating it. Then, it is interpreted that it is re-entering the cryptocurrency market as investors’ interest has grown again, such as the price of bitcoin, a representative of cryptocurrency, surpassing $60,000 each (about 67 million won).
Reuters quoted an anonymous source, saying, “(Coindesk reinstallation) is Goldman Sachs’ response to the rapid increase in the size of the digital asset field.” “Blockchain technology and central bank digital currency (CBDC), the principle of which Bitcoin works. We will also carry out related projects.”
Goldman Sachs
Along with Goldman Sachs, other large investment banks such as JPMorgan are expected to participate in Bitcoin transactions. JP Morgan co-CEO Daniel Pinto said in an interview with CNBC on the 12th of last month, “If a specific asset develops over time and different asset managers and investors use it, JPMorgan must also participate. It will meet the demands of investors.”
The financial world’s favorable evaluation of cryptocurrency has also begun to emerge. In a report published on the 1st (local time) (‘Bitcoin at an inflection point’), Citigroup said, “Looking at the recent development, Bitcoin is at an inflection point between being recognized as a mainstream currency and speculative collapse.” In order to be recognized, we need to improve a few problems.”
In addition, he said, “Considering the nature of bitcoin designed to transcend borders (if it becomes a mainstream financial asset), each country’s access to bitcoin will increase, and in the future it will be able to be used as a currency for international trade.”
On the 1st (local time), Citigroup released a report ″BITCOIN: At the Tipping Point″, which analyzed cryptocurrency assets such as Bitcoin. Photo Citigroup homepage capture
However, criticism surrounding the report was also raised. It is pointed out that the source of the cited data is not reliable and the content is not accurate. The Financial Times (FT) criticized that day, “the part in the report that claimed that bitcoin can be used for international trade is absurd,” and “some mainstream media reported it without considering the rationality of the report.”
Despite the comments of FT and others, the price of Bitcoin surged as the Citigroup report was released. According to CoinMarketCap, a U.S. cryptocurrency market relay site, the transaction price of bitcoin at 9:30 a.m. (Korean time) on this day rose by 7.7% from 24 hours ago to $576 (about 56 million won).
Reporter Yoon Sang-eon [email protected]
