The fake news reportedly caused a panic in the cryptocurrency markets leading to a drastic fall in prices. As Kyle Chapman, an analyst in venture capital pointed out in a CNBC article, “Once the market sees Goldman stepping back and being patient, it starts to wonder ‘what does Goldman know that I don’t know’? The market has trepidation about impending regulatory decisions.”
Many observers linked the news of Goldman Sachs ditching their plans for the cryptocurrency trading desk due to the fall of the markets. However, it was the other way around. Due to false news of Goldman Sachs ditching the plans, the markets fell.
Chavez clarified the report being false at the TechCrunch Disrupt Conference in San Franciso. He said, “I never thought I would hear myself use this term but I really have to describe that news as fake news.”
The CTO of Goldman Sachs confirmed that the bank is currently working on a Bitcoin derivative which will be a non-deliverable forward due to the demand from clients.
‘The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” Chavez further elaborated.
Chavez went on to explain that Goldman’s efforts are still not mapped out. “When we talked about exploring digital assets that it was going to be an exploration that would be evolving over time. Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but it’s not here yet,” Chavez explained.
Goldman Sachs even has a meeting planned with members from Korea Post for discussions on Artificial Intelligence, Blockchain, and Cryptocurrencies. Things are still looking pretty great on the crypto side of things for Goldman Sachs!
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