Goldman Sachs CEO David Solomon has shared his thoughts on the role that Bitcoin plays in the global financial system.

At a recent event, Solomon denied that Bitcoin or other cryptocurrencies might threaten the US dollar’s dominance. His remarks demonstrate how warily the conventional financial industry is reacting to the rising acceptance of digital assets.

Bitcoin’s Volatility A Significant Issue

Solomon claimed Bitcoin’s high fluctuations make it unreliable as a means of exchange or a safe place to keep value. He acknowledged that cryptocurrency is well-known for being speculative in nature, but he pointed out that it can’t compete with traditional money like the dollar because it is too unstable.

“The dollar’s dominance is a result of trust and stability, which Bitcoin does not presently offer,” Solomon explained.

Critics have had a longstanding issue with the erratic price fluctuations of Bitcoin. Proponents regard its decentralized nature as a strength, while skeptics such as Solomon regard it as a significant obstacle to its widespread adoption for everyday use.

🇺🇸 $3 TRILLION GOLDMAN SACHS CEO SAYS #BITCOIN IS NOT A THREAT TO THE USD 🤯 pic.twitter.com/oz5R2ob987

— Vivek⚡️ (@Vivek4real_) January 22, 2025

Regulation Is The Key To Crypto’s Future

Solomon asserts that regulation is essential to the future of cryptocurrencies. Even if the crypto world is becoming more legitimate, he noted that the regulatory structure is still changing. He warned that without clear norms, firms and institutional investors would still be reluctant to fully adopt digital assets.

Solomon believes that laws and rules will play an important role in the future of cryptocurrencies. He noticed that the rules for cryptocurrency are still being developed, even though the industry is becoming more accepted. He warned that companies and big investors might still be unsure about fully adopting digital assets without clear rules.

On Co-Existence: Crypto & Greenback

Solomon thinks differently than others who see Bitcoin as a rival to the greenback. He emphasized that the dollar being the global currency doesn’t conflict with crypto which many consider as “digital gold.”

This viewpoint is consistent with the notion that Bitcoin and fiat currencies can coexist. While fiat currencies continue to dominate traditional commerce and international trade, Bitcoin can function as a hedge against inflation or monetary instability.

The Complicated Relationship Between Wall Street And Crypto

Goldman Sachs’ posture is indicative of the more general approach to cryptocurrencies that Wall Street has taken: cautious optimism. Solomon’s remarks underscore skepticism; however, the bank’s actions indicate that it is closely monitoring the potential of the crypto market.

Although the gap between conventional finance and the cryptosphere is still substantial, it is gradually diminishing. As institutional interest increases and regulation becomes more transparent, the future of cryptocurrencies may change significantly. Only time will determine whether Bitcoin can enhance or undermine the existing system.

Featured image from Pexels, chart from TradingView

Tron founder Justin Sun has declared that Wrapped Bitcoin (WBTC) has effectively become the United States’ national Bitcoin reserve.

The statement comes amid an inadvertent feud between two Bitcoin wrappers- Bitgo’s WBTC and Coinbase’s cbBTC, with Donald Trump’s DeFi project expressing a vested interest in the former.

Is WBTC the De Facto US National Bitcoin Reserve?

The Tron founder took to social media to explain his perspective, articulating the favor WBTC continues to enjoy from Donald Trump-backed DeFi project, World Liberty Financial (WLFI).

“WBTC has become the US national Bitcoin reserve in name. Is there any president other than Donald Trump who diligently buys Bitcoin daily? Trump is ‘the one and only Bitcoin president,’” Sun wrote.

Sun’s comments draw from a recent purchase by World Liberty Financial, which is highly endorsed by the Trump family. Lookonchain reported that the DeFi project acquired an additional 94.94 WBTC valued at $9.84 million on Thursday.

Spot On Chain corroborated, adding that in three days, the fund had invested $56.82 million in 534.1 WBTC at an average price of $106,379.

“The Trump team has chosen WBTC and decided to support it through action once again,” Wrapped Bitcoin’s official X account quipped.

In December, the DeFi venture cleared its cbBTC portfolio of 102.9 tokens worth $10.4 million to acquire 103.15 WBTC. The following day, Sun was named an advisor to WLFI. This highlights Sun’s growing interest in the DeFi project and the growing relationship between WLFI and WBTC.

Drawing references to these shows of preference, Justin Sun took a jab against Coinbase, citing its lack of transparency and specifically targeting its Proof of Reserves (PoR) practices. He also referred to the crypto adage, “Not your keys, not your coins!”

“Relying on Coinbase’s zero Proof of Reserves product means your BTC could be frozen or confiscated anytime. It’s entirely at the mercy of Paul Grewal [Coinbase CLO]. If he likes you, you’re safe. But if he doesn’t? Game over. That’s not how a secure blockchain infrastructure should operate—especially at the presidential level. So cbBTC was out,” Sun explained.

The Tron founder continues to emerge as a vocal advocate of WBTC, particularly after BitGo’s custody overhaul.

Its new multi-jurisdictional and multi-institutional custody model emphasizes security through decentralization, which, according to Sun, is a stark contrast to Coinbase’s approach. This fuels Sun’s criticism of cbBTC.

“cbBTC lacks Proof of Reserve, no audits, and can freeze anyone’s balance anytime. Essentially, it is just ‘trust me.’ Any US government subpoena could seize all your BTC,” Sun wrote last September.

Overall, Coinbase’s cbBTC and BitGo’s WBTC have since grown to be market rivals over the past several months. Coinbase’s recent suspension of WBTC trading has only intensified competition.

The exchange now faces a lawsuit alleging anti-competitive practices regarding WBTC.

Cryptocurrency exchange Kraken has made a significant gesture toward Silk Road founder Ross Ulbricht, donating $111,111 in Bitcoin (BTC) to support his reintegration after years of incarceration.

Meanwhile, Coinbase’s Conor Grogan revealed identifying a Bitcoin stash linked to Ulbricht after over 13 years of dormancy.

Kraken Cushions Ross Ulbricht with $111,111 Bitcoin Donation

The exchange revealed the donation via a post on X (Twitter), adding that it had set up a public address for additional contributions. With this, Kraken encouraged the Bitcoin community to rally behind Ulbricht.

“Dear Ross, All of us at Kraken want to make sure that after what you’ve been through, you’re able to land on your feet with the support of the community that loves you most, the Bitcoin community. That is why we’ve donated $111,111 in BTC to YOU,” the exchange shared.

Kraken’s donation reflects the broader Bitcoin community’s commitment to supporting those who have been pivotal in its history. The move follows Ulbricht’s presidential pardon on Wednesday.

Ross Ulbricht, the founder of the infamous dark web marketplace Silk Road, was sentenced to life in prison in 2015. Charges entailed conspiracy tied to money laundering, hacking, and drug trafficking. His case has been a lightning rod for debates about internet freedom, overreach in sentencing, and cryptocurrency’s role in illicit markets.

Following Ulbricht’s presidential pardon, and as BeInCrypto reported, crypto market participants are calling for clemency extended to Roger Ver, “Bitcoin Jesus.” Among them is Kraken co-founder and chair Jesse Powell, who also expressed gratitude to President Donald Trump for honoring his commitment to free Ulbricht.

“Free Roger Ver,” Powell said in a post.

Coinbase Executive Tracks Ulbricht’s Long-Lost Fortune

In a parallel development, Conor Grogan made an interesting discovery. The Director of Product Strategy and Business Operations at Coinbase revealed that he had identified approximately 430 BTC across dozens of wallets associated with Ulbricht. This stash, untouched for over 13 years, is now valued at around $47 million.

“I found ~430 BTC across dozens of wallets associated with Ross Ulbricht that were not confiscated by the US Govt and have been untouched for 13+ years. Back then these were probably dust wallets, now, collectively, they are worth about $47M. Welcome back Ross,” Grogan disclosed.

The BTC, documented in court filings during Ulbricht’s trial, has remained dormant since his arrest. The news has sparked mixed reactions across social media. Some users have raised questions about the ethics of reviving funds tied to Silk Road’s operations.

“Some things are better left unsaid,” one user on X expressed.

This reflects the cautious tone of the debate. Grogan refrained from sharing specific wallet addresses, noting that they are publicly available data from trial documents and blockchain analysis. It remains unknown whether Ulbricht still has access to the keys.

“Unlikely if he has the keys still stored down anywhere. I guess we will know soon enough,” he noted.

The discovery adds another layer to Grogan’s reputation as a blockchain sleuth, which had earned him the title “crypto’s Indiana Jones.”  In 2023, Grogan tracked down $322,000 worth of dormant Ethereum Classic (ETC) and returned it to an owner who was unaware of its existence. His efforts have earned him widespread recognition for ethical blockchain exploration.

“ETH forked in 2016; if you held a balance you would get credited 1:1 the ETC. My thesis is that many people are not aware that they were in the snapshot. Forgetting you have funds onchain (or not keeping track of airdrops) is common. I’ve found 6+ figures for people previously,” Grogan said at the time.

These developments come at a time when Bitcoin’s ethos of decentralization and financial sovereignty is under scrutiny. Nevertheless, Kraken’s donation and Grogan’s revelations about the dormant BTC wallets add a financial dimension to Ulbichts’ second chance.