Morgan Stanley CEO Gorman Says Bitcoin Is “More Than Just a Fad”, Bitcoin’s Price Rises

Morgan Stanley’s CEO, James Gorman, recently shared his belief that bitcoin is “more than just a fad,” revealing that his views on the cryptocurrency differ from those of his rival Jamie Dimon, who said bitcoin was in a bubble worse than the 17th-century Dutch tulip bubble.

Earlier this month, JP Morgan’s chief executive Jamie Dimon stated that bitcoin was a fraud, causing bitcoin’s price to fall by about 24%. After the fall, JP Morgan bought €3 million worth of Bitcoin ETNs, reportedly on behalf of its clients, which led to a bitcoin market maker – Blockswater – filing a market abuse report against the banker.

Then, Jamie Dimon swung at bitcoin again, as reported by Core Media, and stated that the cryptocurrency is “worth nothing.” Notably he stated that the bigger cryptocurrencies get, the more governments are going to “close them down.”

At an event held by the Wall Street Journal, according to Bloomberg, Gorman didn’t just say the cryptocurrency was more than a fad, as he also added that bitcoin’s concept is interesting, stating:

“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.”

When asked whether he thought cryptocurrencies should be illegal, Gorman revealed that he personally never invested in the cryptocurrency, but that he’s spoken to a lot of people who have. Although the cryptocurrency is “obviously highly speculative,” he pointed out that isn’t something inherently bad, as it’s just a “consequence of the whole blockchain technology.”

Morgan Stanley’s CEO did question the future regulatory developments of the cryptocurrency ecosystem, wondering “at what point do regulators — like the Chinese have been saying — just decide we want to control monetary flows for money laundering and privacy and capital outflows and all the other reasons.”

Bitcoin’s price rises to $4,260

As Jamie Dimon’s comments on bitcoin led to the cryptocurrency’s price plunging, Gorman’s words on the cryptocurrency gave it an additional boost that allowed to go as high as $4,260, according to data from CryptoCompare.

The cryptocurrency had already received a boost this week after European Central Bank (ECB) President Mario Draghi stated that the ECB doesn’t have the authority to regulate cryptocurrencies. His comments were made despite the bank’s vice-president Vitor Constâncio saying that bitcoin is “certainly not a currency,” as covered by Core Media.

Despite the price surges, bitcoin is currently trading at $4,173.17. It isn’t clear what caused the small price correction, as it could merely have been caused by traders taking profits.