Goldman Sachs CEO David Solomon has made clear that Bitcoin does not pose a threat to the US dollar, asserting its benefits to the financial sector.
In an interview with CNBC on January 22, 2025, during the World Economic Forum in Davos, Solomon emphasized the dollar’s global dominance and referred to Bitcoin as an “interesting speculative asset.”
“I do not think Bitcoin is a threat to the US dollar,” Solomon said. He reiterated his faith in the dollar’s crucial role in the global economy, while also acknowledging the significance of Bitcoin’s underlying technology to Goldman Sachs.
Blockchain Research Essential for Enhancing Financial Systems
According to Solomon, the bank is proactively investigating blockchain applications for diminishing inefficiencies within the financial system, describing this research as “super important.” However, existing regulatory challenges hinder banks from fully engaging with Bitcoin. “At the moment, from a regulatory perspective, we can’t own, we can’t principal, we can’t be involved with Bitcoin at all,” Solomon noted, suggesting that this could evolve if regulations change.
Solomon’s insights are similar to those of Lee Bratcher of the Texas Blockchain Council, who promotes expanding dollar-pegged stablecoins to strengthen US dollar supremacy. Bratcher has recently stated that stablecoins facilitate global access to the dollar, ensuring its status as a reserve currency.
In related statistics, the US Dollar Index (DXY) increased by 0.14% over the past 30 days, reaching 108.310, while Bitcoin experienced a 7.89% growth over the same timeframe, currently trading at $102,911, as reported by TradingView.
In November, Goldman Sachs revealed plans to spin off its cryptocurrency platform into a separate entity aimed at developing and trading financial instruments based on blockchain technology. This transition is anticipated to finalize in 12 to 18 months, conditional on regulatory consent, according to Mathew McDermott.
Potential for National Debt Reduction through Bitcoin
A recent report from asset management firm VanEck touted that the US could cut its national debt by approximately 35% by establishing a Bitcoin reserve of 1 million within 24 years, echoing proposals from Senator Cynthia Lummis. VanEck’s analysis assumes Bitcoin will achieve a 25% annual growth rate, reaching $42.3 million per Bitcoin by 2049, despite the national debt projected to inflate from $37 trillion in 2025 to $119.3 trillion during that period.
The report, penned by Matthew Sigel and Nathan Frankovitz from VanEck, outlines that by 2049, assets in Bitcoin could cover about $42 trillion in national liabilities.
