Goldman Sachs Group, Inc. a leading global investment banking, securities and investment management firm has referred to its association with cryptocurrency and blockchain as a potential business risk. As it were, in the recent disclosure report circulated a week ago by Bank of America, which cautioned at the time that it faces both focused and consistency risk because of the technology.
As per the Feb. 26 documenting, which constitutes its yearly report for the financial year 2017, Goldman believes that it may be affected as a result of its work with customers and the organizations it has put resources into.
In a Monday filing with the SEC, the bank wrote –
Additionally, although the prevalence and scope of applications of distributed ledger technology and similar technologies are growing, the technology is also nascent and may be vulnerable to cyber attacks or have other inherent weaknesses. We may be, or may become, exposed to risks related to distributed ledger technology through our facilitation of clients’ activities involving financial products linked to distributed ledger technology, such as blockchain or cryptocurrencies, our investments in companies that seek to develop platforms based on distributed ledger technology, and the use of distributed ledger technology by third-party vendors, clients, counterparties, clearing houses and other financial intermediaries.
however, there isn’t any connection, the risks highlighted particularly on cryptocurrency front- may form part of the reason why Goldman has thus far eschewed any closer involvement in the market.