Goldman Sachs reportedly jumps on the bitcoin bandwagon #Breaking112
“In this newly-created role, she will work closely with advisors to educate clients about blockchain technology and the digital assets ecosystem, and seek to deliver content, investment offerings and services,” the memo said.
“There’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that,” Rich said. “There are also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space.”
Crypto’s rising popularity
The decision by Goldman shows major financial institutions are beginning to embrace cryptocurrencies after years of skepticism due to its volatile nature. CNBC reported earlier in March that Goldman’s rival Morgan Stanley will offer its wealthy clients access to bitcoin funds, the first major US bank to do so.
As more financial institutions invest in bitcoin, more companies are expected to join. Some investors believe that it could be a good hedge against inflation and a weak dollar. The Federal Reserve cut interest rates in March 2020, severely weakening the US dollar and shooting up the price of bitcoin.
“We’re still in the very nascent stages of this ecosystem. No one knows exactly how it will evolve, or what shape it will be,” Rich said. “But I think it’s fairly safe to expect it will be part of our future.”