The Bitcoin ecosystem is flourishing, and with institutional interest in blockchain technology and digital currency from Goldman Sachs, you can expect Bitcoin to continue to thrive. More and more financial institutions are looking to implement a blockchain or a digital currency into their business operations, and with that being said, Bitcoin is likely to prosper since it was first to market.
Recently, Goldman Sachs appointed Mathew McDermott, a former managing director for their investment bank internal funding operations, as head of digital assets. Shortly after he was appointed, McDermott said several things that indicate the multinational investment bank and financial service company’s beliefs about blockchain and digital assets.
“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain,” said McDermott. “So what you’re doing today in the physical world, you just do digitally, creating huge efficiencies. And that can be debt issuances, securitization, loan origination; essentially you’ll have a digital financial markets ecosystem, the options are pretty vast.”
McDermott’s comments signal that we may see financial institutions digitize their current processes in the near future. From companies implementing a blockchain for internal use to central banks around the world researching, developing, and piloting a central bank digital currency, the benefits of using a blockchain when dealing with information that is supposed to be permanent, non-editable, timestamped, verifiable, and secure are hard to ignore.
Blockchain is more efficient
“There’s a lot of legacy processes in the vast movement of collateral that makes them very cost inefficient, so by leveraging distributed ledger technology, you can standardize processes to manage collateral across the system, and you have a much more efficient settlement process given the real time settlement,” said McDermott.
When you look at Bitcoin, the cost savings and reduction in settlement time are instantly realized. Transaction settlement on the Bitcoin blockchain happens nearly instantaneously, and the average transaction fee is $.0002 per transaction. That being said, it is much cheaper to use the Bitcoin blockchain than it is to use the current processes and systems that many banks and financial institutions use.
With Goldman Sachs endorsing blockchain technology for all the features inherent to Bitcoin (BSV), you can expect Bitcoin to have a bright future.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.