Goldman Sachs CEO David Solomon has suggested that bitcoin could potentially serve as a store of value similar to gold, while maintaining a cautious stance on its speculative nature.
In an interview with CNBC, Solomon clarified that he has never been a critic of bitcoin but is wary of its speculative aspects. He highlighted the promise of the underlying technology, describing it as “super interesting” and capable of reducing friction in an increasingly digitized financial system.
When asked about bitcoin’s potential to serve as a reserve asset like gold, Solomon responded, “There very well could be a store of value case.”
Under Solomon’s leadership, Goldman Sachs has been actively exploring the cryptocurrency space. In 2021, the firm established a crypto trading desk, signaling its commitment to digital assets. At that time, Solomon expressed the belief that bitcoin could eventually rival and surpass gold’s market capitalization, although he still viewed it as a speculative asset. Some Goldman Sachs executives have previously argued that bitcoin’s volatility hinders its ability to be a reliable store of value.
Despite these mixed messages, Goldman’s dedication to digital assets remains clear. The firm plans to roll out three tokenization projects by the end of the year, targeting both the U.S. and European markets.
Growing Debate on Bitcoin as a Reserve Asset
The potential of bitcoin as a reserve asset is a topic of increasing debate. At the 2024 Bitcoin Conference, MicroStrategy CEO Michael Saylor expressed his belief that the first country to start accumulating bitcoin by issuing fiat currency could gain an economic advantage. Saylor suggested reallocating treasury reserves from gold and bonds to bitcoin, issuing currency and debt to purchase the cryptocurrency, and implementing laws favorable to BTC ownership.
Similarly, Senator Cynthia Lummis has argued that bitcoin could help the United States manage its growing debt. She has proposed a bill making bitcoin a strategic reserve asset solely to reduce the national debt. On July 30, Lummis announced on social media that the U.S. national debt had surpassed $35 trillion and suggested that bitcoin could be a solution to control it.
Political Implications
Bitcoin’s role in politics is also evolving. During Solomon’s interview, CNBC hosts noted that bitcoin has become a significant political issue, with both Democrats and Republicans showing more support for the sector. Former President Donald J. Trump recently headlined the Bitcoin 2024 conference, increasing industry optimism about future regulatory clarity.
Meanwhile, Vice President Kamala Harris has reportedly shifted the administration’s cautious stance on crypto, engaging with the industry to find common ground. However, some believe she needs to take more decisive actions, such as changing SEC leadership, to shift public perception.
