Goldman Sachs CEO David Solomon reaffirmed his confidence in the US dollar as the world’s dominant reserve currency, dismissing Bitcoin as a potential competitor. Speaking at the World Economic Forum in Davos, Solomon told CNBC’s Andrew Ross Sorkin that while Bitcoin is an “interesting speculative asset,” it lacks the characteristics needed to rival the dollar.
“At the end of the day, I’m a big believer in the US dollar,” Solomon said on Wednesday. “Bitcoin is speculative—an interesting one, but it doesn’t pose a real challenge to the dollar’s global dominance.” He further clarified, “I don’t think Bitcoin is a threat to the US dollar.”
Trump’s Bitcoin Reserve Plan Sparks Questions
Solomon’s remarks come amid President Donald Trump’s announcement of a proposed “strategic Bitcoin reserve.” Trump’s plan involves retaining all Bitcoin currently held or acquired by the US government as part of a long-term reserve strategy.
When asked if this development might alter Goldman Sachs’ approach to cryptocurrency, Solomon sidestepped a direct answer. Instead, he emphasized the bank’s focus on leveraging blockchain and other crypto-related technologies to enhance the financial system.
Despite this technological interest, Solomon noted that current regulations prohibit Goldman Sachs from directly owning, trading, or handling Bitcoin as a regulated financial institution.
Goldman’s Cautious Approach to Crypto Markets
Solomon’s comments align with his earlier statements about the bank’s cautious stance toward digital assets. In December, he hinted at the possibility of Goldman Sachs becoming a spot market maker for major cryptocurrencies, contingent on clearer regulations.
“You’ll need to ask the regulators,” Solomon stated. “As a regulated banking institution, we’re currently not allowed to own cryptocurrencies like Bitcoin.”
However, Solomon acknowledged that regulatory changes might occur under Trump’s second administration, though the timeline and specifics remain uncertain.
Growing Interest in Crypto Among Wealthy Investors
Despite regulatory challenges, interest in cryptocurrencies is rising among Goldman Sachs’ clientele. In 2023, the bank revealed that nearly half of the family offices it works with expressed interest in adding digital currencies to their investment portfolios.
This trend underscores the growing appetite for digital assets among institutional and high-net-worth investors, even as regulatory hurdles continue to limit traditional banking institutions’ direct participation in the market.
Blockchain: A Key Focus for Goldman Sachs
While Solomon dismissed Bitcoin as a rival to the US dollar, he expressed optimism about the underlying blockchain technology. He highlighted the bank’s active exploration of blockchain as a tool to modernize and improve financial systems.
This pragmatic approach reflects a broader industry trend, where traditional financial institutions increasingly view blockchain as a driver of efficiency, transparency, and innovation, even as they maintain a cautious stance on direct cryptocurrency involvement.
The Broader Implications
Solomon’s statements reveal a nuanced perspective on cryptocurrencies. While he downplayed Bitcoin’s potential to challenge the US dollar, his acknowledgment of crypto’s technological promise and the growing interest among wealthy investors suggests that Goldman Sachs is closely monitoring the space.
However, the bank’s ultimate involvement in cryptocurrencies will largely depend on regulatory clarity, a factor that remains unpredictable even as political and institutional interest in digital assets intensifies.
As the regulatory environment evolves, particularly under Trump’s Bitcoin reserve proposal, Goldman Sachs may revisit its crypto strategy to balance innovation with compliance, potentially reshaping its role in the digital asset market.