Three Major U.S. Financial Giants Repeatedly Shift Their Attitude Toward Bitcoin
How is Bitcoin able to challenge the U.S. dollar?
The three major U.S. institutions, the Federal Reserve, Goldman Sachs, and JP Morgan Chase, have gone back and forth on their views of bitcoin, with completely different theories behind their views. Some say that the U.S. economy or the world economy, in fact influenced by the Federal Reserve, is the world’s most important financial institution; the U.S. investment community Goldman Sachs face is the most heavyweight unit, some say this institution is the U.S. national team; JPMorgan Chase Bank is the boss of the U.S. banking sector. These three have always been the three most important institutions in the U.S. financial world. We can observe these three institutions’ views on Bitcoin to see how the world of finance is changing.
The Federal Reserve’s view
The Federal Reserve has long believed that Bitcoin is not something to worry about. When the Facebook stablecoin white paper came out in June 2019, the Fed was asked if it was worried about bitcoin. The Fed chairman said no, because the difference between bitcoin’s market cap and the dollar’s market cap is so far apart that it won’t affect the dollar at all. That view changed until February 2021, when the Fed publicly acknowledged that bitcoin was challenging the dollar. And bitcoin is challenging the dollar not in terms of market cap, but in terms of its liquidity. In terms of market capitalization, Bitcoin really doesn’t compare to the dollar, but in terms of liquidity, Bitcoin is already challenging the dollar. Even the former President of the United States has acknowledged this fact.
Goldman Sachs’ view
It was also not bullish on bitcoin for a long time, but in early 2021 it turned bullish again, believing it to be a new asset. But recently in June it changed again and did not recommend it to clients. This has gone back and forth 2 times.
JPMorgan Chase Bank’s view
We talked about JPMorgan Chase’s view last week. They too were bearish until they changed their view and bitcoin started to fall. But in recent months it’s been bearish on bitcoin again. So JPMorgan Chase Bank changed their view 2 times.
These are three important U.S. financial institutions that have been changing their views on bitcoin or digital tokens. The reasons for each change are different from the previous ones: 1) they started by turning a blind eye to Bitcoin; 2) they were shocked by Bitcoin’s small survivability and changed their attitude; 3) they found out later that Bitcoin would affect the dollar’s position in the world and changed their attitude again. If bitcoin is still allowed to challenge the dollar, the world monetary system could change.
The last change was based on the influence of the digital currency zone theory at Princeton University in 2019 before the change of view. And by this time the world monetary competition is already a $3 competition. The situation is more complex than before. From the recent pronouncements of the European Central Bank and the Bank of England, they are more worried about the Facebook-anchored dollar stablecoin.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/three-major-u-s-financial-giants-repeatedly-shift-their-attitude-toward-bitcoin/
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