Goldman Sachs CEO: 'It's Arrogant to Deny Cryptocurrency'

On Aug. 6, Goldman Sachs CEO, Lloyd Blankfein, shared his thoughts on cryptocurrency during an interview with the Economic Club of New York.Cryptocurrency Could Be the Next Evolution in Cash.

Blankfein appeared at the Economic Club of New York to answer questions regarding cryptocurrency and its potential to replace fiat currency in the future.

Keeping an open mind, Blankfein said that cryptocurrency could replace fiat currencies, just as fiat currencies did to commodity-backed currencies.

The Goldman Sachs CEO stated that it would be "Too arrogant" to deny the possibility of cryptocurrency gaining public adoption as a common medium of payment.

It's not for me. I don't do it. I own no Bitcoin. Goldman Sachs, as far as I know, unless nobody told me, has no Bitcoin. But, if it does work out, I could give you the historical path why that could happen, have happened. And so, I'm not in the school of saying, 'Gee - because it's uncomfortable with me, because it's unfamiliar: 'This can't happen.' That's too arrogant."

Announced Aug. 6, Goldman Sachs is considering offering custodial services to cryptocurrency funds.

If enacted, Goldman Sachs would become the first major investment bank to back cryptocurrency funds-potentially drawing an influx of institutional investors to the sector.

In early May, Goldman Sachs confirmed plans to launch a Bitcoin futures trading desks to meet rising client demand.

One month later, the firm revealed plans to expand its cryptocurrency division beyond Bitcoin futures.

As one of the first Wall Street firms to take an industry-forward outlook on cryptocurrency, it's becoming evident that Goldman Sachs is just beginning its expansion into the new asset class.