Financial Director at Goldman Sachs, Marty Chavez (Marty Chavez) has denied news that the Bank refused to develop crypto products and services. During yesterday’s speech at the conference TechCrunch Disrupt Conference, Chavez called this information “the fake news”.
Chavez denied this the next day after Business Insider and Reuters, citing sources inside Goldman Sachs, reported freezing of the project on trade cryptocurrency due to poor legislative framework. In an attempt to clarify the situation, Chavez said:
“Yesterday I was in new York, co-chaired the meeting of the risk Committee, and saw the publication. In General, we have nothing to announce, and it’s not for us something changed… never thought I would ever utter these words, but I have to call this information the fake news.”
On Wednesday, an anonymous source familiar with the situation told Business Insider that the launch of cryptocurrency trading had to be suspended because the Bank management is still not convinced the existing rules of the activity. At the same time, in the comments to Reuters a spokesman for Goldman Sachs, Michael Duvally (Michael DuVally) said:
“At this stage we have not come to a conclusion as to the scope of our proposals in the field of digital assets.”
Words both sources were interpreted by the media and investors as a full-fledged rejection of the plans. In this regard, the market again fell into decay: so, bitcoin per day lost almost $1000; total market capitalization decreased by approximately $39 million (data CoinMarketCap.com).
Chavez also confirmed that Goldman Sachs is working on other products of cryptocurrency: bitcoin derivatives and clearing of physically settled futures on bitcoin. According to Chavez, these products are most often requested by the clients of the investment Bank:
“[…] In may, customers began to request: “We want you to be also supplied liquidity and traded […] futures contracts and not simply engaged in their clearing””.
For the first time the rumors that Goldman Sachs is planning to start trading cryptocurrencies, appeared in December 2017. Later, in August, it was reported that the Bank is preparing to launch the product custodian for the cryptocurrency deposits.
