Morgan Stanley: some crypto are definitely currencies

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Morgan Stanley presented its Bitcoin outlook in the paper prepared for the bank’s clients: “Bitcoin: A new technology and a controversial asset.” The analysts repeat the old-fashioned thesis that “cryptocurrencies and the technology behind them such as blockchain are not one and the same”. This statement was previously crashed by Geoge Kikvadze, the vice-president of Bitfury Group who argued  that “This is similar to saying I love the Internet; just not the TCP/IP protocol. Bitcoin is one of the fundamental applications of blockchain technology. It’s the protocol that makes blockchain secure and safe. Without Bitcoin, blockchains are just databases. We have those already.”

This led to the situation when some Bitcoin enthusiasts claimed that their motto is “Bitcoin, not blockchain.” The bank still praises blockchain as the concept and technology behind Bitcoin that “may influence innovation going forward.”

Morgan Stanley classifies “cryptocurrencies as an experimental concept that is not regulated or backed by any central bank worldwide and has no tangible intrinsic value.” The bank listed a number of issues must be resolved as “governance, transparency, exchangeability, anonymity, volatility, fraud, manipulation, and hacking.”

The bank reveals that it considers at least some of crypto coins as currencies, so it handles them as money. Some of them are going to be considered as securities or “somewhere in between.”

Describing the current state of crypto market, Morgan Stanley cites statistics that Malta’s crypto turnover is nearly double that of the US. The number of crypto in the market is being considered as about 1,000.

See also  Bank of England: OK, to own digital currency

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