Ex-Goldman CEO Blankfein Says Governments Would Likely Try to Shut Down Bitcoin if It Becomes Too Successful

Blankfein misrepresented bitcoin's traceability and falsely claimed users are blind to their counter-parties.

By Danny Nelson

Jan 26, 2021 at 8:21 p.m. UTC

Updated Sep 14, 2021 at 11:01 a.m. UTC

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Danny Nelson

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Former Goldman Sachs CEO Lloyd Blankfein pooh-poohed bitcoin's "store of value" and "medium of exchange" propositions on CNBC Monday, stressing that if the cryptocurrency ever grew to a substantial size the regulators would likely move to shut it down.

"If I were a regulator, I'd be, you know, I would be kind of hyperventilating at the success of [bitcoin] at the moment and I'd be arming myself to deal with it," Blankfein said.
The finance executive asserted that bitcoin users have no way of knowing if enemy states like North Korea and Iran are counter-parties to their transactions. He then seemingly implied there's no way to monitor bitcoin transactions, ignoring entirely the cryptocurrency's inherent traceability.
Bitcoin's success at weathering the regulator's impending storm could serve to undermine its most appealing attributes, Blankfein said.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Danny Nelson

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Danny Nelson