Former Goldman Sachs President Gary Cohn said that the world might have a global cryptocurrency. He also said that it would not be bitcoin.
Cohn said he is not a firm believer of Bitcoin. Instead, he is a believer of the blockchain. He thinks there will be a global cryptocurrency where the world “understands it” and it is “not based on mining costs or electricity cost or other similar things.” Cohn was the chief economic adviser to the Trump administration before resigning in March.
Bitcoin generates through an energy-intensive mining procedure that requires specialized computer hardware. It is also the first application of blockchain technology, eliminating the need for a third-party intermediary by making a protected, permanent transaction record between the two parties.
Blockchain allows Bitcoin users to send funds to other places at a low price quickly. However, Bitcoin encountered obstacles in the past such as handling massive transaction volume.
Cohn predicts the digital currency to be more straightforward than Bitcoin. He said that it will be a more comprehensible cryptocurrency and that it will probably have blockchain technology behind it. He added that the creation, transfer, and use would be more understood.
An increase of interest in Bitcoin and assumptions for large-scale institutional investment helped raise prices up to more than 13 percent last year. On Tuesday, the recorded value of Bitcoin reached around $9,100.
Goldman Sachs, Cohn’s former employer, is one of the firms making a “deliberate foray” into cryptocurrencies. The bank hired former trader Justin Schmidt to be its first head of digital assets market for Goldman’s securities division.
When asked regarding reports that Goldman Sachs will start offering Bitcoin contracts and opening a trading desk, Cohn commented that the company should do what they think is inclined to the best interests of their shareholders. Cohn also said that he plans on operating a regulated bank, “but in a digitized world.”