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Morgan Stanley CEO: Bitcoin Is 'By Definition Speculative'

Morgan Stanley chairman and CEO James Gorman has said that bitcoin is “punching above its weight,” according to a news report.

Speaking to CNBC this morning, however, Gorman further said that the cryptocurrency “doesn’t deserve the attention it’s getting,” arguing:

“Something that goes up 700 percent in a year – it’s by definition speculative. So anybody who thinks they’re buying something that it’s a stable investment is deluding themselves.”

The financial firm’s chief also spoke about issues and ambiguities surrounding bitcoin, including whether it is a needed as a new form of stored value or not. “I’m not so sure,” Gorman said.

However, maintaining his previous stance on bitcoin, in which he said it is “more than just a fad,” he believes that its growing acceptance and usability means the cryptocurrency is “not going away overnight.”

The comments follow other recent statements from other big names in finance including Goldman Sachs CEO Lloyd Blankfein, who said that he isn’t “comfortable” with bitcoin, and JPMorgan Chase CEO Jamin Dimon, who now-famously stated that bitcoin is a “fraud.”

James Gorman image via World Economic Forum/Remy Steinegger/Flickr

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Morgan Stanley CEO: Bitcoin Is 'More Than Just A Fad'

The head of one of Wall Street’s biggest banks believes bitcoin is “more than just a fad.”

James Gorman, CEO of Morgan Stanley, made the comments during an event hosted by the Wall Street Journal today. According to Bloomberg, Gorman said that the privacy features of cryptocurrency are compelling.

He said:

“The concept of anonymous currency is a very interesting concept – interesting for the privacy protections it gives people, interesting because what it says to the central banking system about controlling that.”

That said, Gorman isn’t personally invested, though he did say he has encountered a number of people who have bought a stake in the market.

“I’ve talked to a lot of people who have,” he said at the event. “It’s obviously highly speculative but it’s not something that’s inherently bad. It’s a natural consequence of the whole blockchain technology.”

Gorman’s moderated stance stands in contrast to comments issued this month by JPMorgan Chase CEO Jamie Dimon, who made headlines when he said he believes bitcoin is a “fraud.” He later doubled down on those remarks, predicting that governments would move more forcefully to crack down on cryptocurrencies.

According to Bloomberg, Gorman himself pointed to that question of future regulatory developments around cryptocurrencies, wondering aloud when regulators would “decide [they] want to control monetary flows for money laundering and privacy and capital outflows and all the other reasons.”

Image Credit: World Economic Forum – Remy Steinegger/Flickr

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.