Bitcoin Isn’t A Threat To The US Dollar: Goldman Sachs CEO

Goldman Sachs CEO David Solomon dismissed the notion that Bitcoin poses a threat to the US dollar, instead highlighting the cryptocurrency’s potential benefits for the financial sector.

Speaking in an interview with CNBC on 22 January 2025 during the World Economic Forum in Davos, Solomon expressed confidence in the dollar’s global dominance while describing Bitcoin as an “interesting speculative asset.”

“I do not think Bitcoin is a threat to the US dollar,” Solomon stated. He emphasized his belief in the dollar’s central role in the global economy and noted that Bitcoin’s underlying technology has caught the attention of Goldman Sachs.

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Blockchain Research Key To Reducing Financial System Inefficiencies

According to Solomon, the bank is actively researching blockchain applications to reduce inefficiencies in the financial system, calling this exploration “super important.”

However, regulatory barriers remain a significant limitation for banks. “At the moment, from a regulatory perspective, we can’t own, we can’t principal, we can’t be involved with Bitcoin at all,” Solomon explained. He added that this could change if the regulatory environment evolves.

Solomon’s views align with those of Lee Bratcher, president of the Texas Blockchain Council, who advocates for the proliferation of dollar-pegged stablecoins to maintain US dollar dominance. Bratcher recently argued that stablecoins offer global access to the dollar, reinforcing its position as the world’s reserve currency.

The US Dollar Index (DXY) has risen 0.14% over the past 30 days to 108.310, while Bitcoin has seen a 7.89% increase over the same period, trading at $102,911, according to TradingView data.

In November, Goldman Sachs announced plans to spin off its cryptocurrency platform into a standalone company.

The new entity will focus on creating and trading financial instruments on blockchain networks, with the transition expected to be completed within 12 to 18 months, pending regulatory approval, according to Mathew McDermott, Goldman’s global head of digital assets.

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VanEck: US Could Slash National Debt By 35% With 1 Million Bitcoin Reserve

The US could potentially reduce its national debt by 35% within 24 years by establishing a reserve of 1 million Bitcoin, according to a report by asset management firm VanEck. The projection aligns with a proposal introduced by Senator Cynthia Lummis.

VanEck’s analysis assumes Bitcoin will grow at a compounded annual growth rate (CAGR) of 25%, reaching $42.3 million per BTC by 2049. During the same period, the U.S. national debt is expected to increase at a 5% CAGR, ballooning from $37 trillion in 2025 to $119.3 trillion.

By 2049, a Bitcoin reserve could offset approximately $42 trillion in national liabilities, according to the report authored by VanEck’s head of digital asset research, Matthew Sigel, and investment analyst Nathan Frankovitz.

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