Goldman Sach CEO sets Cryptos on a Humpty Dumpty Fall

Bitcoin falls off another cliff as cryptocurrency slump deepens

While the South Korean government continues to form regulations concerning cryptocurrency operations in the country, this is no doubt positive and encouraging news, and a step in the right direction.

The cryptocurrency sell-off which has seen Bitcoin drop 10% looks set to extend into its third day, fuelling fears of a full-blown crash. A heavy correction gripped the crypto-market, soon after, with its valuation dropping by $12 billion.

TechCrunch reports that on September 6th, Goldman Sachs CFO Martin Chavez was a guest speaker at the TechCrunch Disrupt Conference in San Francisco, where he said that the Business Insider report was "fake news", nothing that the firm hadn't made any internal changes regarding its cryptocurrency activities. The US Securities and Exchange Commission (SEC) has warned that some coins may be regarded as securities and regulated accordingly.

"Their name carries weight across the globe", said Ryan Rabaglia, head trader at digital asset brokerage OSL in Hong Kong, referring to Goldman Sachs.

CFO Chavez revealed that the company is working on a type of Bitcoin derivative, non-deliverable forwards, which will be over the counter derivatives settled in US dollars.

In a recent interview, the Korea Post president revealed that he initiated a discussion with David Solomon, Goldman Sachs' new chief executive, noting, "I asked Goldman to pass on their know-how in the cryptocurrency area".

Some are claiming that the news is likely to keep bitcoin and cryptocurrency down for good - that this was the highlight of digital money's journey towards legitimacy, and the barricades will be too much to handle without Goldman Sachs' help.

Earlier this week, a report suggested Goldman Sachs was backing away from its plans to open a cryptocurrency trading desk, as it was rumored to have meant to do this summer. Customer demands will fuel the new derivative, and the reference price will be the Bitcoin/USD price established by a group of exchanges.

Will other wall street banks also consider crypto offerings for their clients like Goldman Sachs?

"When we talked about exploring digital assets that it was going to be exploration that would be evolving over time", he said. Further, the report said that Goldman was looking at custody solutions for institutional investors.

Of course, Goldman Sachs is already dealing with bitcoin in a roundabout way.

Ultimately, Goldman Sachs are interested in having an institutional grade custodial solution in the long run.

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