Don’t call Goldman Sachs Group Inc’s long-awaited Bitcoin-trading business a full-fledged desk, and don’t expect it to buy and sell bitcoins, at least at first.
The bank, preparing to pioneer a new cryptocurrency market on Wall Street, plans to start small and offer a limited number of derivatives, according to a person briefed on the decisions. It will trade Bitcoin futures in a principal, market-making capacity and will also create non-deliverable forward products.
Wall Street firms began offering clients futures from Cboe Global Markets Inc and CME Group Inc in December. But one issue with buying and selling actual bitcoins is that they can be stolen by hackers. That means any bank looking to facilitate those transactions will have to figure out how to guard such assets, a step that could require a nod from regulators.
Goldman Sachs already hired Justin Schmidt as head of digital asset markets to help clients gain exposure to cryptocurrencies. He will sit on the firm’s currency desk, a source said, discussing internal plans.
The New York Times reported on Thursday the bank’s decision to offer forward products, noting that the business will start in the next few weeks. (Business Standard)
Only one in 10 people understand how cryptocurrencies work while 29 per cent have some knowledge about digital currencies, a new Survey by Russian cybersecurity firm Kaspersky has found.
The rate at which cryptocurrencies are being adopted by global consumers is slowing down, despite celebrities like Johnny Depp and YouTube influencers such as PewDiePie embracing the technology.
“To date, four in five people (81 per cent) have never purchased cryptocurrency, highlighting just how far away we are from it being accepted as a common form of payment or investment,” the findings showed.
Although there is a desire among many consumers to use cryptocurrency, a knowledge gap is getting in the way of taking the plunge.
In addition, many people who thought they knew with what they are dealing with, later decided against using cryptocurrency. Nearly a fifth (18 per cent) stopped because it became too technically complicated.
Nearly a third (31 per cent) of respondents stated that they believe cryptocurrencies are quite volatile and they need to be stable before they are prepared to use them.
There is also a common perception among consumers that cryptocurrency will not be around forever.
A third (35 per cent) believe cryptocurrencies are a fad that is not worth bothering about.
“It is clear that mainstream adoption and growth of cryptocurrency is being held back due to the vulnerable nature of the technology. While there is a high appetite to use it, giving your hard-earned cash to something you don’t fully understand, or trust, is a hurdle,” explained Vitaly Mzokov, Head of Commercialization at Kaspersky.
While widespread interest in cryptocurrencies may have already peaked, there is still a demand to use the technology. A fifth (20 per cent) of those surveyed said that while they are not using cryptocurrency at the moment, they would like to in the future.