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Ex-Goldman President Sees A Global Cryptocurrency, Simpler Than Bitcoin

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Gary Cohn, former Goldman Sachs President and former chief economic advisor to US President Donald Trump, expects the emergence of a global cryptocurrency in the future, but it will not be bitcoin.

Talking to CNBC, Cohn, who resigned from Trump adviser role in March, said, "I'm not a big believer in bitcoin. I am a believer in blockchain technology.....I do think we will have a global cryptocurrency at some point where the world understands it and it's not based on mining costs or cost of electricity or things like that."

He further said that the new digital coin will be a more easily understood and simpler coin than the current major cryptocurrency.

Cohn added, "It will probably have some blockchain technology behind it, but it will be much more easily understood how it's created, how it moves and how people can use it."

Bitcoin and other cryptocurrencies are created by solving complex mathematical problems in a process known as mining, which requires highly powerful computers and consumes enormous electricity. The owners of the computers involved in mining will be rewarded with new digital tokens or coins.

The process creates excess energy, raising concerns of environmental impact, with people around the world trying to find new ways to tackle the issue.

About Goldman, Cohn said the bank should do what it think's in the best interests of shareholders.

Goldman Sachs was one of the few major financial firms to clear Bitcoin futures offered by Cboe Global Markets Inc. and CME Group Inc. when it was launched in December. Meanwhile, Goldman CEO Blankfein, in a November interview with CNBC, had said that maybe bitcoin is a kind of bubble, and that he was not comfortable with it.

The New York Times reported recently that the investment banking major is planning to establish a bitcoin trading operation. The bank reportedly made its first crypto-specific appointment recently with Justin Schmidt, a former cryptocurrency trader, as the first head of digital asset markets in securities division, aiming to explore options to create a bitcoin trading desk.

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