Goldman Sachs Declares Crypto Project Reports ‘Fake News’
According to CNBC, Martin Chavez, the CFO of Goldman Sachs, stated that circulating claims regarding the multinational investment firm’s decision to abandon the launch of a digital currency trading desk is false information.
Goldman CFO Speaks Up About Fake News Reports
During Chavez's attendance at SanFran based TechCrunch Disrupt Conference, he stated that contradictory to recent industry rumors, the firm’s thoughts towards launching a digital asset trading desk falls under the category of fake news and misreported information.
Initially, Bloomberg published reports last year describing the firm’s notion to launch a cryptocurrency trading desk before the conclusion of 2018. This week, Business Insider followed up on the story, claiming that private sources confirmed the firm’s decision to suddenly scrap the project in response to regulatory uncertainty within the crypto industry. Chavez explained that perhaps community excitement regarding the possible launch of a Goldman Sachs crypto-focused project was premature.
According to CNBC, Chavez explained that once the firm openly discussed the notion of crypto exploration, it would be a long-term investigative strategy. He believes someone may have jumped the gun in regards to the firm’s overall plan and intention towards investigating cryptocurrencies later realizing that plans were not quite moving along as rapidly as predicted.
Why Goldman Sachs Isn’t There Yet
Although Goldman Sachs currently clears and provides liquidity solutions for BTC futures contracts issued by both the CBOE as well as the CME, Chavez explained that custody solutions must be made reliable prior to the firm’s ability to manage physical BTC. Adding to his statement, Chaves clarified that BTC is both extremely interesting and equally complex. Looking through a custody standpoint, the firm has yet to identify a custody solution for BTC on an institutional level. Speaking on behalf of the multinational investment firm, Chavez concluded with the fact that such a solution is a major aspect of the company’s long-term interests. Currently, Goldman Sachs is developing a derivative of BTC which offer OTC derivative contracts agreed upon in USD.
Overnight Market Crash
Despite claims of misreported information, various cryptocurrency values experienced significant drops in the market including that of Bitcoin, Litecoin, and Ether. In total, market cap drops calculate to $12 billion within a timeframe of one hour. Throughout the past twenty four hours, all major coins suffered losses with BTC down by 6% currently trading at $6,479.