Wall Street Giants Speak Out! Bitcoin on Par with Gold, Becomes a Key Topic at Goldman Sachs' Next Investor Meeting

According to an invitation to the 15th conference call released by Goldman Sachs, the investment group will host a client call on May 27th titled "US Economic Outlook and the Impact of Current Policies on Inflation, Gold, and Bitcoin." In addition to focusing on macroeconomic trends and their impact on financial markets, Bitcoin and cryptocurrencies will be central topics of discussion during the meeting.

Goldman Sachs 15th Conference Call: Discussing Bitcoin?

The conference call is scheduled to take place on May 27th at 10:30 PM Taiwan time. It will be hosted by Sharmin Mossavar-Rhami, Chief Investment Officer at Goldman Sachs, alongside Jason Furman, Professor of Economics at Harvard Kennedy School, and Jan Hatzius, Chief Economist and Head of Global Research at Goldman Sachs.

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The invitation does not reveal much detail beyond the conference theme. However, it is certain that Bitcoin will be one of the core topics of discussion. Mossavar-Rhami, the Chief Investment Officer at Goldman Sachs, previouslystated in 2018 that he believed Bitcoin and other cryptocurrencies had no value. It will be interesting to see his comments on Bitcoin during this conference.

Amidst the crisis, the Federal Reserve has injected over $3 trillion of hot money through quantitative easing policies and relief bills. Just in the first quarter of this year, its balance sheet has nearly doubled compared to last year. (Central banks worldwide are taking similar measures)

Cryptocurrency advocates argue that such actions are akin to planting the seeds of inflation in the market. In this uncertain environment, scarce assets like Bitcoin and gold are expected to thrive. This argument is also supported by legendary fund manager Paul Tudor Jones, who recently revealed that he will maintain a long-term Bitcoin position to hedge against the risk of supply inflation.

Goldman Sachs' invitation places inflation, gold, and Bitcoin under the same theme for discussion, which may indicate Goldman Sachs' affirmation of the argument that "Bitcoin can hedge against inflation."

JPMorgan Warns CBDCs Could Cause Significant Loss to the US

Apart from Goldman Sachs, other Wall Street giants are increasingly focusing on cryptocurrency and digital asset issues. The U.S. banking giant JPMorgan recently announced its support for Bitcoin exchanges, providing a significant traditional financial endorsement for the cryptocurrency industry that has struggled to maintain banking relationships for years.

Furthermore, JPMorgan recentlyexpressed its views on the prospects of Central Bank Digital Currencies (CBDCs). The bank claims that once CBDCs become mainstream and gain traction in the global currency market, it will undermine U.S. geopolitical influence.

JPMorgan analysts point out that CBDCs will not directly alter the U.S. dollar's status as the world's reserve currency. However, the infrastructure that supports the dollar's status, such as trade settlement systems and banking settlement systems (SWIFT), will be directly impacted. These infrastructures are tools the U.S. uses to implement economic sanctions globally, such as SWIFT suspending services to certain Iranian banks in 2018. However, CBDCs will significantly weaken the influence of these infrastructures globally. JPMorgan analysts wrote in the report:

"The advantages of dollar hegemony revolve mainly around issuing the global reserve currency and acting as a medium of exchange for international trade of goods, commodities, and services. No country would suffer greater losses from the disruptive potential of digital currencies than the U.S."

JPMorgan analysts believe that if the U.S. loses these advantages, it will struggle to implement economic sanctions and address national security issues such as terrorist financing. Although the U.S. currently has no plans to issue a CBDC, the report suggests that from the perspective of safeguarding influence in the global economy, establishing a cross-border payment solution based on a digital dollar may be a very appropriate investment.