Goldman Sachs has offered its first Bitcoin-backed loan, showing further signs of increased interest in cryptocurrency from Wall St institutions.
Goldman Sachs has offered its first Bitcoin-backed loan, in a major step forward for institutional cryptocurrency adoption on Wall St.
A spokeswoman from Goldman told Bloomberg that the multinational investment bank had lent cash collateralized by Bitcoin (BTC) owned by the borrower for the first time in Goldman Sachs’ history. She added that the deal was particularly interesting because of its structure and 24-hour risk management.
Such a loan allows for a Bitcoin holder to borrow fiat currency such as the US dollar, by fronting up their BTC as collateral to the bank. The underlying volatility of Bitcoin can make these loans risky — if the price of bitcoin drops too far the borrower may be required to increase their collateral, otherwise they risk getting liquidated.
Last month, Goldman, which now sports its own in-house digital assets team, executed their first over-the-counter (OTC) crypto transaction in collaboration with the trading unit of Michael Novogratz’s crypto investment firm Galaxy Digital.
Goldman is not alone in its foray into digital assets, with fellow Wall St banks ramping up their movements into the cryptocurrency space as well.
China has expanded its central bank digital currency pilot program to include the payment of tax, stamp duty and social security.
Residents in three major Chinese cities have begun paying tax, stamp duty and social security premiums using the country’s central bank digital currency — the digital yuan (e-CNY).
According to a domestic news report, a number of government agencies in the Zhejiang province — located just south of Shanghai — are currently running real world trials programs that involve citizens using the digital yuan to pay taxes.
The Zhejiang Taxation Bureau is working with the country’s central bank — the People’s Bank of China (PBoC) — to explore a variety of taxation payment methods using the digital yuan.
The PBoC and affiliated local government agencies are reportedly looking to the next major test for the digital yuan, the Asian Games which will take place in Hangzhou in September. Local authorities claim that the digital yuan could be used to streamline calculating tax-related activities.
Following the successful steps in the implementation of the digital RMB pilot program, which began public testing in April 2021, the PBoC stated that it will look to extend the program to more Chinese cities including Guangzhou, Tianjin and Chongqing.
“Bitcoin Jesus” Roger Ver has made a comeback to Twitter and says Dogecoin is a top contender for the world’s dominant cryptocurrency.
Roger Ver, an early investor and ardent promoter of Bitcoin (BTC) which earned him the moniker “Bitcoin Jesus” has resurfaced on Twitter after a year and backed Dogecoin (DOGE) in an interview, preferring it for payments over the world’s first crypto.
In an interview with Bloomberg, the Bitcoin.com founder said how he was a fan of the memecoin due to its fast transaction times and low fees:
“Dogecoin is significantly better, it’s cheaper and more reliable [than Bitcoin]. If I had to pick three contenders for the world’s dominant cryptocurrency, they would be Doge, Litecoin and Bitcoin Cash.”
Ver also took time in the interview to voice his support for honorary Dogecoin CEO Elon Musk’s Twitter takeover.
“It’ll certainly make Twitter more attractive,” said Ver. “I am really, really grateful that Musk is out there calling out censorship.”
A video posted in March to Ver’s YouTube channel shows he and his entourage onboarding retail merchants and taxi drivers to use Bitcoin Cash as a preferred payment method in Saint-Martin.
Ver says that Bitcoin Cash is the true vision of Bitcoin creator Satoshi Nakamoto, and despite all his advocacy for the crypto, he claims he isn’t all in on BCH:
“I am definitely a cryptocurrency whale still, I’ve always had a wide assorted basket in cryptocurrency. I was never a Bitcoin or Bitcoin Cash maximalist.”
This Daily Dose was brought to you by Cointelegraph.