Goldman Sachs mentioned cryptocurrency for the first time in its annual shareholder letter, acknowledging its increasingly important role

PANews reported on March 15th, according to The Block, Goldman Sachs mentioned cryptocurrency in its annual shareholder letter, acknowledging its increasingly important role in the financial market and competition. Goldman Sachs stated in the letter: "The growth of electronic transactions and the introduction of new products and technologies, including transaction and distributed ledger technology (such as cryptocurrencies) as well as artificial intelligence technology, have intensified competition." "In some cases, our competitors may offer financial products that we do not offer but our customers may prefer, including cryptocurrencies and other digital assets that we cannot or may choose not to provide."

While emphasizing the increasing popularity of blockchain and digital assets, the company warned about potential risks such as cybersecurity vulnerabilities and market volatility. "Although the prevalence and application scope of distributed ledger technology, cryptocurrencies, and similar technologies are constantly expanding these technologies are still in their infancy stage which might be vulnerable to cyber attacks or have other inherent weaknesses." The letter also warned that the company faces risks when assisting clients with activities involving blockchain financial products investing in related companies accepting digital assets as collateral.