Goldman Sachs: Regulators should be concerned about Bitcoin

Goldman Sachs senior chairman Lloyd Blankfein said regulators should be concerned about Bitcoin’s recent high

Yesterday, Goldman Sachs‘ CEO argued that Bitcoin represents an obstacle for financial regulators seeking to monitor the sector. He explained that regulators may soon be unable to manage the financial sector if they allow the main active crypto to continue to thrive. In his view, regulators should be uncomfortable with Bitcoin, especially now that it is becoming popular every day.

Speaking on CNBC’s Squawk Box programme, Blankfein explicitly implied that the digital asset was hurting regulators. He specifically referred to Bitcoin’s relative anonymity, claiming that it sabotages efforts made to regulate the financial system. He added Bitcoin Trader that the application of the asset as a means of exchange makes it ideal for illicit and criminal activities in the sector.

„You don’t know whether or not you are paying the North Koreans, or Al-Qaeda, or the revolutionary guard,“ he said.

Blankfein’s claim apparently contradicts common knowledge that authorities have used the transparency of the blockchain to track criminals‘ use of cryptomorphs. The head of Goldman Sachs said regulators should not allow Bitcoin and other crypto assets to proliferate and prosper in their current form.

„If I were a regulator, I would be hyperventilating with [Bitcoin’s] success at the moment, and I would be arming myself to deal with it.

Based on his comments, Blankfein is far from convinced that Bitcoin is an ideal value reserve. He disapproved of the asset, citing its price volatility and the technological knowledge needed to deal with cryptomeda.

„It’s a store of value that can move 10% in one day, that if you lose the code or if you lose the piece of paper – it’s lost forever, or if someone takes it away from you – as you will know“.

Blankfein proposed the limitation of several fundamental freedoms enabled by Bitcoin (pseudonym privacy features) to manage the asset. This could, however, have a negative impact and impact the asset’s performance, especially its market demands.

„This could be feasible, but it will undermine the freedom and kind of lack of transparency people like about it in the first place. That’s the puzzle Bitcoin will have to deal with to get out of“.