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Goldman Sachs Group Inc
At an event, CEO Lloyd Blankfein said there was no imminent need for Goldman Sachs to develop a strategy around bitcoin, which rose to an all-time high of $11,395 on Wednesday only to lose one-fifth of its value on Thursday.
"Something that moves up and down 20 per cent in a day doesn't feel like a currency, doesn't feel like a store of value," Blankfein said at an event hosted by Bloomberg to promote Goldman's 10,000 Small Businesses endeavour.
"In response to client interest in digital currencies, we are exploring how best to serve them in the space," she said.
Established in 2009 as a digital currency not backed or regulated by governments, bitcoin was mainly supported by technology enthusiasts at first. Its reputation was marred by hacks that lost investors billions of dollars, and by those who allegedly used the currency to mask illicit dealings.
But as its price has soared, traditional investors have entered the market, and major exchanges plan to introduce bitcoin futures contracts. The technology that underpins bitcoin trading, called blockchain, has also become popular among large financial institutions that see it as a mechanism to more cheaply and efficiently handle other transactions.
JPMorgan Chase & Co
Meanwhile, Citigroup Inc