Solomon Believes that Blockchain Technology Disrupts Banks

Goldman Sachs CEO David Solomon Expresses Confidence in Blockchain Tec

Over the last decade, blockchain technology has 

Garnered a lot of attention, moving beyond the praise of hardcore Bitcoin fans and into the mainstream debate of banking experts and investors.

In line with this, Goldman Sachs CEO David M. Solomon recently talked to the Wall Street Journal, reaffirming his confidence in blockchain technology. Solomon believes that “unlike previous waves of innovation, blockchain technology infiltrated and disrupted severely regulated industries.”

Solomon also stated that blockchain technology is assisting businesses in changing the way they raise capital. Citing the current crypto market downturn, he asserted that cryptocurrency is only one side of blockchain.

"Cryptocurrencies are simply one of blockchain's numerous applications, so we shouldn't miss the forest for the trees. When used effectively, blockchain can encourage responsible innovation across the financial industry."

This is not the first time Solomon has addressed cryptocurrency and blockchain in an interview. Earlier, Goldman Sachs revealed plans to get their hands on several cryptocurrency firms, either to invest in or buy them during difficult times.

Goldman Sachs Optimistic About Blockchain Technology

In the same piece with Wall Street Journal, Solomon discussed how they settled a $100 million, two-year digital bond for the European Investment Bank utilizing a private blockchain. 

Solomon noted that by utilizing private blockchain, they were able to settle the bond in 60 seconds, which usually takes 5 days. Meanwhile, for your information, private blockchains are significantly worse than public blockchains when it comes to settling digital bonds.

After initiating this settlement, Solomon stated that despite blockchain's enormous potential, banks were unable to do a lot with cryptocurrency due to regulatory roadblocks.

Conclusion

Goldman Sachs is currently the leading banking institution venturing the blockchain technology for its regular operations. Earlier, reports also cited that the banking behemoth is planning to launch a trading platform that will execute trades within minutes. 

The above-made assertions by Solomon clearly indicate that blockchain technology will transform the banking industry in the times to come.

What do you think, will other prominent banking institutions start experimenting with blockchain technology in the future? Share your thoughts in the comment section below.

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