Bitcoin does not threaten the throne of the US dollar, despite its recent jump

David Solomon, CEO of Goldman Sachs, confirmed that the cryptocurrency Bitcoin does not pose a threat to the position of the US dollar as a global reserve currency, noting that the basic technology of the cryptocurrency is an added value to the banking sector, according to what was reported by the “Coin Telegraph” website.

Speaking in an interview with CNBC on the sidelines of the World Economic Forum in Davos, Switzerland, Solomon stated: “I do not think that Bitcoin will pose a threat to the US dollar.” He added: “I am a big believer in the strength of the US dollar, but I consider Bitcoin an interesting speculative asset.”

Goldman’s focus on Bitcoin

Solomon explained that Goldman Sachs is focusing heavily on studying the underlying technology of Bitcoin, explaining that it may contribute to reducing friction within the global financial system. He said: “This technology is of great importance, and we are investing in its research to develop solutions that reduce the complexities of financial transactions.”
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Obstacles to banks’ use of Bitcoin

However, Solomon pointed out that there are regulatory obstacles that limit the ability of banks to deal with Bitcoin, saying: “At the present time, from a regulatory perspective, we cannot actually own Bitcoin, but if the situation changes in the future, then we can open a discussion about this topic.” .

Strengthening the dominance of the dollar through stable currencies

In a related context, Lee Brasher, Chairman of the Texas Blockchain Technology Council, pointed out that stable currencies backed by the dollar could enhance the position of the US dollar at the global level. “To maintain American hegemony, the dollar must remain the global reserve currency,” Brasher said. “The proliferation of stable currencies allows the dollar to reach millions of people around the world with ease.”
Read also: What are the Bitcoin price expectations one year from now under the Trump administration?

Performance of the dollar and Bitcoin over the past month

According to Trade View data, the US dollar index rose by 0.14% over the past thirty days, reaching the level of 108.310. In contrast, Bitcoin achieved gains of 7.89% during the same period, trading at $102,911.

Goldman Sachs Cryptocurrency Plans

In another development, Goldman Sachs Bank revealed its plans to separate its digital currency platform to establish a new company focused on developing and trading financial instruments via blockchain technology. Matthew McDermott, head of digital assets at the bank, said that the separation process is expected to be completed within 12 to 18 months, pending the necessary regulatory approvals.
Solomon’s statements highlight Goldman Sachs’ view of Bitcoin as an opportunity to develop financial technology rather than a threat to traditional currencies. While the US dollar continues to maintain its position as the global reserve currency, innovations in the field of blockchain and cryptocurrencies may reshape the global financial system in the future.