Goldman’s Crypto Chief Worries About Fraud, but Not Cryptocurrency’s Future – Yahoo Finance

Goldman’s Crypto Chief Worries About Fraud, but Not Cryptocurrency’s Future – Yahoo Finance

The Global Head of Digital Assets at Goldman Sachs said in a Q&A published in the firm’s May 21 Global Macro Research newsletter that the growing cryptocurrency space, particularly related to “hot storage,” was “only one big fraud away from a very negative impact on the market.”

Addressing a question about risks to the industry, Mathew McDermott, who was expressing his own views and not those of the research team, also noted that “inconsistent regulatory actions” worldwide could “impede the further development of the crypto space.”

But McDermott, a nearly 16-year Goldman Sachs veteran, who was previously the firm’s Global Head of Cross Asset Financing, felt reassured that large crypto companies have been managing their “growth without any noticeable increase in fraudulent activity,” and encouraged about the industry. “It’s not often that we get to witness the emergence of a new asset class,” he said.

Related: Greenpeace Stops Accepting Bitcoin Donations, Cites High Energy Use

Similar to most other large financial services firms, Goldman Sachs had been initially skeptical about cryptocurrency but overcame its doubts as demand for crypto-related investment products and services rose steadily among investors. Earlier this month, the investment banking giant announced in an internal memo that it had traded two kinds of bitcoin-linked derivatives and that it was aiming to participate more heavily in the market by “selectively onboarding” crypto trading service providers. It also
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