Goldman Sachs is fearful of falling behind the competition as they moving to introduce their crypto token

For now, it seems that banking giant Goldman Sachs is afraid of falling behind JPMorgan if they don’t start adapting to new technology. Therefore, perhaps for this very reason, Goldman Sachs is turning to introduce its cryptocurrency.

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Goldman Sachs may release its cryptocurrency shortly

JPMorgan made headlines earlier this year when it announced the JPM Coin initiative. This is a crypto token that banks can use to make instant transfers between parties globally. And their move made Goldman Sachs feel they needed to speed up.

Last month, Goldman Sachs appointed Mathew McDermott as their new global head of digital asset development. This is the person who will deploy and leverage the benefits of Blockchain technology and digital ledgers to develop new initiatives for the traditional banking industry.

McDermott is said to have a “radical vision” of the global financial market.

He said:

“I believe that ledger technology will underpin the entire economic system within the coming decades and help automate many of the processes that currently require massive amounts of time and capital to complete – like IPOs and debt issuances.”

Unlike his predecessor, McDermott is not a supporter of cryptocurrencies and seems to focus more on blockchain technology rather than digital assets.

In an interview with CNBC, he shared his thoughts on how DLT and blockchain can fundamentally change the global financial system as follows:

“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on-chain… So what you’re doing today in the physical world, you do digitally. ”

In the interview, McDermott also announced that the bank is currently exploring the possibility of creating a digital crypto asset. The value of the token will be underpinned by fiat types that are intended to be viable for commercial use.

He explained the following:

“We are exploring the commercial viability of creating our fiat digital token, but early days as we continue to work through the potential use cases.”

According to the report, he also hinted that a project his newly expanded team was working on involves a partnership with JPMorgan.

On a positive note, McDermott has said that he is witnessing “return interest” for cryptocurrencies from retail and institutional investors.

“It feels like there is a resurgence of interest in cryptocurrencies.”

Despite his upbeat tone, he refuses to reveal whether he holds positions in any crypto asset.

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