Goldman Sachs Exec: Crypto Created by Central Bank Can Be Useful

A senior executive for Goldman Sachs believes that cryptocurrencies created by central banks could be incredibly useful  
28 February 2018   636

During an interview with Business Insider, Sharmin Mossavar-Rahmani, chief investment officer for Goldman's Private Wealth Management unit noted that in her opinion, cryptocurrencies in their current format are in a bubble.

The bitcoin prices are astronomical. Then we compare that to the ether, and ether is even more astronomical. So clearly, these valuations don't make sense to us.

Sharmin Mossavar-Rahmani

Furthermore, Mossavar-Rahmani stated that in future such digital currencies would be more useful than the coins in existence today. She said that there is a room for a digital currency, for example, sponsored by one of the central banks. In her opinion, it could be very useful and it could reduce transaction costs. But, the existent currencies can't do that.

She went on to speculate about the impact of a potential downturn in the cryptocurrency market on the wider economy.

So in terms of the impact, it'll have some impact. There are a lot of people who have set up various exchanges, infrastructure, hedge funds in that space, so obviously, they will get hurt. But it's a very, very small part of global GDP.

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   195

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.
 

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.