Bitcoin a vehicle to commit fraud: Goldman’s Blankfein

The boss of Goldman Sachs has become the latest high-profile critic of bitcoin, claiming it was a vehicle to commit fraud as the value of the cryptocurrency plunged 20 per cent in less than 24 hours.

Lloyd Blankfein, chief executive of the US investment bank, said, ''Something that moves 20 per cent [overnight] does not feel like a currency. It is a vehicle to perpetrate fraud.''

Blankfein's comments came in the context of a highly volatile trading session for the digital currency, tanked by over $2,000 in a 24-hour period.

The crypto-currency had topped $11,000 to hit a new record high of $11,395 on Wednesday.

After falling to a low of $9,000 on Thursday, it picked up slightly later in the day.

Blankfein said Goldman did not need a bitcoin strategy, adding the digital currency would need to be a lot less volatile and a lot more liquid to justify closer attention.

''When do I have to have a bitcoin strategy? Not today. Life must be really rosy if that is what we are talking about,'' he said. ''Bitcoin is not for me. A lot of things that have not been for me in the past 20 years have worked out, but I am not guessing that this will work out.''

However, he added that the bank will trade in bitcoin if it becomes more established, trades in a less volatile manner and has more liquidity.

Also Goldman has been looking at ways to facilitate bitcoin trades for customers and is still doing so, spokeswoman Tiffany Galvin told Reuters in a statement.

"In response to client interest in digital currencies, we are exploring how best to serve them in the space," she said.