Bitcoin More Than Just a Fad, Morgan Stanley CEO Says

Not every Wall Street bank key is bearish on bitcoin.

Morgan Stanley Chief Executive Officer Adam Gorman takes a more measured approach to the cryptocurrency than crosstown competitor Jamie Dimon, the JPMorgan Run after & Co. head who previously this month called it “ a fraud” that’ s in the speculative bubble worse than tulip bulbs.

Bitcoin will be “ certainly something more than just the fad, ” Gorman said Wed at an event held by the Wsj. “ The concept of anonymous currency is an extremely interesting concept — interesting for your privacy protections it gives people, fascinating because what it says to the main banking system about controlling that will. ”

The digital currency has jumped in recent months, spurred by greater approval of the blockchain technology that underpins exchange and optimism that quicker transaction times will encourage wider use. Prices have climbed over four-fold this year — a operate that has drawn debate over regardless of whether that’ s a bubble.

“ I haven’ to invested in it, ” Gorman mentioned. “ I’ ve talked to many people who have. It’ s obviously extremely speculative but it’ s not really something that’ s inherently poor. It’ s a natural consequence from the whole blockchain technology. ”

Gorman did wonder “ at what point do government bodies — like the Chinese have been stating — just decide we want to manage monetary flows for money laundering plus privacy and capital outflows and everything the other reasons. ”

Dimon differentiated between the bitcoin foreign currency and the underlying blockchain technology, which usually he said can be useful. He furthermore noted that his daughter got bought some bitcoin.

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