Goldman CEO keeps open mind on digital currency bitcoin

Reuters 

By Aparajita Saxena and Olivia Oran

(Reuters) - Group Inc Chief Executive Lloyd Blankfein said he is keeping an open mind on after a media report that the investment was exploring a new trading operation dedicated to cryptocurrencies.

"Still thinking about # No conclusion - not endorsing/rejecting. Know that folks also were sceptical when paper money displaced gold," Blankfein tweeted on Tuesday. (http://bit.ly/2xP543l)

The plan is in early stages and may not proceed, the Wall Street Journal report on Monday, citing people familiar with the matter. (http://on.wsj.com/2xMdWq8)

Blankfein's tweet is in sharp contrast to comments made by JPMorgan Chase & Co CEO Jamie Dimon, who called a "fraud."

is a currency that enables individuals to transfer value to each other and pay for goods and services bypassing banks. The market is fraught with volatility, with prices topping nearly $5,000 in early September and then declining sharply after Chinese authorities said they would ban the process of raising funds through launches of token-based currencies.

Speaking at a investor conference in New York last month, Dimon said, "The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."

"It is worse than tulips bulbs," Dimon said, referring to a famous market bubble from the 1600s.

Goldman's arch rival Morgan Stanley spoke in favour of the currency, with CEO James Gorman calling it "more than just a fad." (http://on.ft.com/2xMStNS)

Former Fortress Investment Group LLC executive Mike Novogratz is also starting a $500 million hedge fund to invest in currencies like

(Reporting by Aparajita Saxena in Bengaluru and Olivia Oran in New York; Editing by Anil D'Silva and Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 04 2017. 01:17 IST