CNBC made a report on September 6 that Martin Chavez, Goldman Sachs CFO, calls any news that say about company’s plans to abandon opening a crypto trading desk not real.
Chavez expressed his viewpoint at the tech conference and told that he felt strange to use the term ‘fake news’, but nothing else fits the content better.
The first information about the plans of Goldman Sachs to develop a unit focused on cryptocurrency by 2019 appeared in winter last year and was given by Bloomberg. However, September 5 Business Insider has mentioned that the following crypto trading desk plans have been abandoned by the Company because of the not clear regulatory environment dominating the cryptocurrency industry. Chavez has called the talks concerning the upcoming trading desk premature. He called it an exploration that would be performed only in some time. He refused that the Company would try to repeat the boost of BitCoin as many people could believe.
At the time when Goldman was making efforts to provide liquidity for the contracts connected with BitCoin from the CBOE and CME, Chavez explains that they want to get a reliable custody solution first until a bank is able to proceed with physical BTC. Chavez calls physical BTC a very interesting and challenging thing. He admits they have not found a suitable custodial solution for the popular coin, but their interest has not disappeared and it will take time to achieve that.
Chavez also said that their goal now is to create a Bitcoin non-deliverable derivative settled in American dollars. A reference price is set by several exchanges and is equal to the Bitcoin/USD price.
Cryptocurrency trading price has experienced a significant drop because of the false information about Goldman Sachs and it is estimated at $12 Billion within a single hour. Losses have been experienced by each of 100 coins within 24 hours. BitCoin has lowered to the point of $6,479 with the 6% decline within a day. Currently, CoinMarketCap reports that total market cap is only $206 Billion.