Goldman Sachs Calls Bitcoin “The Future Of Finance”

As a leading global investment and securities management group, Goldman Sachs, founded in 1869, maintains offices in all major financial hubs around the World.

Recently, a report issued by Goldman Sachs over equity research drew the attention of the entire financial world. The report suggests bitcoin is an “Innovation in network technology and cryptography [that] could change the speed and the mechanics of moving money.”

Currently, the rising trend of crypto-currencies such as bitcoin and other digital currencies has taken the definition of financial exchanges to another level. Digital Currency is an innovation that could revolutionize the elementary processes of transactions and business. The characteristics of improved payment security, huge data analytics and faster payment solutions are providing a technology that could upset the financial ecosystem of traditional payment solutions, according to the report.

Entitled “The Future of Finance,” the report is authored by James Schneider and SK Prasad Borra, both are analysts in the group’s research department. The main idea of this report revolves around bitcoin’s impact over asset transfer. Without a fundamental authority, bitcoin is truly unique. The major beneficiary of bitcoin is merchants for saving payment costs while those who will be affected most are money transfer and exchange firms. The report pointed to Coinbase, Bitpay and Ripple Labs as firms who have occupied most bitcoin space.

The Impact over International Markets

The major impact will be a duty free payment mode that will put aside all authentic money transfers, financial institutions and most importantly, governments of countries to play their role as third-party approval system. Exchanging financial assets will be done simply with consumer-to-consumer interaction in the digital currency market, gaining business for vendors mostly mobile wallets.

Revenue generation from international money transfers will likely to be disrupted due to bitcoin. This market is worth $580bn and so bitcoin will be hard-hitting the sector. Global remittances by consumers are significantly diversified into bitcoin as a cash transfer alternative. $84 billion in profits are on the line.