Central Bank Digital Currencies Could Be Very Useful

Central Bank Digital Currencies Could Be Very Useful

A senior executive for Goldman Sachs believes that digital currencies at least those that could one day be created by central banks could be relatively beneficial. Sharmin Mossavar-Rahmani, chief funding officer for Goldman’s Private Wealth control unit, spoke with Business Insider in an interview posted on Tuesday. Throughout the interview, Sharmin Mossavar-Rahmani noted that they assume digital currencies of their modern format, which means that within the modern incarnation, are in a bubble.


Sharmin Mossavar-Rahmani said:

“The bitcoin expenses are astronomical. Then we compare that to ether, and ether is even more astronomical. So actually, those valuations do not make sense to us.”

However, on the subject of a central bank-subsidized digital currency, Sharmin Mossavar-Rahmani struck a more advantageous tone even going as far to mention that those potential currencies might be more beneficial than the digital currencies in existence nowadays.

Sharmin Mossavar-Rahmani stated:

“Is there room for a digital currency, can be backed by one of the main central banks like the Federal Reserve? Sure. Could it be particularly beneficial? Should it reduce transaction expenses? Sure. However, not these ones.”

Goldman Sachs

Sharmin Mossavar-Rahmani went on to speculate about the effect, which Rahmani characterized as small as an ability downturn within the digital currency marketplace at the wider economic system. Sharmin Mossavar-Rahmani defined this is the case due to digital currencies make up much less than one percent of the globe’s Gross Domestic Product.

Sharmin Mossavar-Rahmani said:

“So in terms of the effect, it will have some effect. There are plenty of people who’ve set up numerous exchanges, infrastructure, hedge finances in that area, so obviously, they’ll get hurt. However, it is very small part of worldwide Gross Domestic Product.”

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