Emily Walker
On Thursday, Lloyd Blankfein, the ex-CEO of Goldman Sachs, shared a post on X discussing the emerging competition between Bitcoin and the US dollar in the realm of global reserve currencies. He, who had been previously skeptical about cryptocurrencies, acknowledged that Bitcoin’s rise could challenge the traditional dominance of the American dollar.
Commenting on Donald Trump’s proposal for a Bitcoin reserve, Blankfein stated: “Trump rightly highlighted the need to safeguard the dollar’s position as the world’s reserve currency, which benefits US trade, finances our deficit, and shapes policies towards various nations. So, why is the new administration so focused on promoting Bitcoin?”
Reactions From The Bitcoin Community
Pierre Rochard, Vice President of Research at Riot Platforms (NASDAQ: RIOT), publicly noted on X that: “BREAKING: Lloyd Blankfein, former Goldman Sachs CEO, believes the US dollar and Bitcoin are in competition to be the world’s reserve currency.”
John Haar, who heads Private Client Services at Swan and has years of experience as a Wall Street portfolio manager, responded to Blankfein’s remarks via X: “Perhaps they aren’t entirely exclusive? It’s probable that the USD and Treasuries will maintain their status as the leading global reserve currency/assets, despite Bitcoin’s increasing market value and acceptance. Also, why do governments keep gold reserves?”
In a similar vein, Matthew Pines, a National Security Fellow at the Bitcoin Policy Institute, positioned Bitcoin’s growth as beneficial for US interests: “Bitcoin is directly aligned with US geoeconomic objectives, such as countering China’s digital authoritarianism, supporting the Treasury-Dollar framework, and promoting our values worldwide.”
David Marcus, the CEO of Lightspark and a former Meta executive, diminished the assertion that Bitcoin poses a risk to the dollar’s superiority, asserting: “Bitcoin does not challenge the dollar’s supremacy. It won’t serve as a common currency for daily transactions. Instead, it acts like a digital gold with significantly greater utility and will be a neutral digital asset for settlements between different systems and currencies. BTC actually strengthens the USD.”
Eric Weiss, CEO of the Bitcoin Investment Group, backed Marcus’s statement, saying: “Bitcoin will enhance and expand the USD’s global presence. They work well together.”
Blankfein’s current opinion aligns with his earlier skepticism regarding Bitcoin and cryptocurrencies. In 2021, he questioned Bitcoin’s effectiveness as a dependable value store and expressed concerns for regulators about its rising influence. He remarked: “I may have doubts, but I remain practical. Thus, I would like to be involved in this sphere.”
By January 2022, Blankfein’s viewpoint began to change. On CNBC’s “Squawk Box,” he stated that the Bitcoin ecosystem was maturing, mentioning: “My outlook is evolving. While I cannot foresee the future, recognizing what is happening today is crucial. Observing the crypto market, I see that it is indeed progressing.” He clarified that by “happening,” he meant the overall growth of the market.
At the time of writing, Bitcoin was valued at $97,793.