Markets Crash After Goldman Sachs Halts Launch of Crypto Trading Desk

According to a report issued Wednesday by Business Insider, the US based multinational investment firm, Goldman Sachs, has decided to discontinue plans to launch a digital currency trading desk. The firm previously declared plans to implement a cryptocurrency trading desk by June 2018. However, a company spokesperson recently noted that as a regulated financial entity, the project requires many more steps before Bitcoin and other cryptocurrencies could be successfully traded.

Goldman Sachs’ Stance On Crypto Remains Unclear

Lloyd Blankfein, the Chief Executive Officer at Goldman Sachs, reportedly offered conflicting statements on the company’s stance on cryptocurrency. According to a Tweet published in 2017, Blankfein declared his interest in Bitcoin, however denied outright rejection or advocacy of the currency.

He also remarked that historically, people were weary about the concept of printed currency displacing assets such as gold and silver. In contrast, Blankfein replied to a later interview question on the subject of bitcoin, revealing his apprehension as to whether it had the potential to succeed with time.

Taking A Step Back From Crypto

This May, the Goldman crypto based trading project was reportedly moving forward as planned, offering many industry supporters the hope that a crucial step towards mainstream adoption was underway. However Wednesday’s official announcement declared the firm’s halt of the project, initiating a decline in several digital currency values. Exchange rates for Bitcoin in particular dropped by 6% resulting in a trading value of $6,934. Ether also experienced a significant drop of 15% bringing the currency’s value down to $243 with Ripple struggling at roughly $0.23 after a 12% dip.

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