Sachs: Libra interesting but not enough to dominate the market

Sachs: Libra interesting but not enough to dominate the market - Goldman Sachs

According to Goldman Sachs or rather from the point of view of its CEO David Solomon the cryptocurrency launched by Facebook it's interesting but she won't dominate the market. This is the concept expressed speaking of Libra to the French press, during an interview focused not only on the future of cryptocurrency but also on that of their regulation and of the banks. 

David Solomon he stated during this interview that his company is currently doing very thorough research on tokenization, because he believes this has potential. He wanted to point out though that at the moment they are still at the initial stages of tokenization, as he says, Libra is also still in its infancy. 

According to the CEO of Goldman Sachs Libra has a great advantage that is, to be able to employ blockchain technology for creation of a stablecoin, therefore of a stable digital currency which will be supported by a basket of FIAT currencies. This is certainly a not insignificant advantage, but at the moment there is no way to determine whether Libra will be able to make more progress than the other cryptocurrencies that investors are constantly watching. 

The regulation and the banks according to Solomon

As mentioned, the interview did not stop only on Libra's potential value, but went on to ask the CEO of Goldman Sachs what the role of regulation could be. His response highlighted how important it is fundamental to deal with regulation, specifying that in any case some regulators are already aware of the changes that are always taking place and are already attentive to the various payment flows. Despite this, for him it is necessary that there is a net change in regulation especially if the cryptocurrencies in the future they will acquire a mainstream value. Without regulation, it is not possible to guarantee stability and security to the financial system. 

As for the role of banks, Solomon is sure that there is no obstacle to their operation even if yes will present new actors like Libra. However, he admits that traditional banks must evolve to meet the increasingly modern needs of their account holders.