In a recent interview, Sharmin Mossavar-Rahmani, the chief investment officer of Goldman Sachs’ Wealth Management unit, reiterated the bank’s steadfast stance against cryptocurrencies, highlighting a divergence from the more embracive approach seen by some of its Wall Street counterparts. Despite the growing interest in digital assets among traditional finance (TradFi) institutions like BlackRock and Fidelity, which have been bolstering their crypto initiatives to meet client demands for bitcoin exposure, Goldman Sachs remains unyielded in its skepticism.
Mossavar-Rahmani’s views on cryptocurrencies are not new. For years, she has been a vocal critic of bitcoin and other digital currencies, questioning their validity as investment assets. “We do not think it is an investment asset class,” Mossavar-Rahmani stated in her interview with the Wall Street Journal, summarizing the bank’s position with a blunt, “We’re not believers in crypto.” This skepticism persists even as TradFi giants pivot towards integrating digital assets into their offerings, driven by client interest. In stark contrast, Mossavar-Rahmani revealed that Goldman Sachs’ clientele exhibits no inclination towards incorporating cryptocurrencies into their portfolios.
One core argument presented by Mossavar-Rahmani against cryptocurrencies is the inherent difficulty in assessing their true value. The absence of a reliable valuation framework renders speculative judgments on the asset class baseless, in her view. “If you cannot assign a value, then how can you be bullish or bearish?” she questions, emphasizing the speculative nature of crypto investments.
Furthermore, Mossavar-Rahmani criticized the cryptocurrency industry for not living up to its ideals of democratizing finance, noting that, in practice, a small group of influential figures tends to dominate decision-making processes. This critique points to a perceived contradiction within the crypto sector, which often touts inclusivity and broadened access to financial services as core tenets.
While Goldman Sachs holds its ground, other major banks have ventured into the crypto space. J.P. Morgan Chase, for instance, launched its blockchain platform in 2020, which now supports a dedicated team of over 100 employees. Similarly, Citigroup Inc. is exploring opportunities in private fund tokenization, indicating a broader trend of Wall Street’s gradual, albeit selective, engagement with digital assets. This divergence in strategy highlights the ongoing debate over the role of cryptocurrencies in the financial mainstream, with Goldman Sachs maintaining a cautious distance from the rapidly evolving digital asset landscape.
