[Bitcoin Now] Rises to 72 Million Won Range... Diverging Views on Cryptocurrency Between Morgan Stanley and JP Morgan

James Gorman Morgan Stanley CEO "Cryptocurrency Is Not a Passing Fad"
However, Both Investment Banks Advise Paying Attention to Regulations

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has risen to the 72 million KRW range. Amid the upward trend in the cryptocurrency market, the US major investment banks Morgan Stanley and JP Morgan have expressed completely opposite views on the value of cryptocurrencies.

According to the domestic cryptocurrency exchange Upbit, as of 2:13 PM on the 15th, Bitcoin recorded 72.88 million KRW, up 4.45% from the previous day. After surpassing the 70 million KRW mark on the 11th, it had been hovering between 69 million and 71 million KRW but is showing signs of rebounding again. It even rose to 73.05 million KRW at 1:52 PM on the same day.

In this situation, Morgan Stanley gave a positive evaluation of cryptocurrencies. According to the US economic media Market Insider on the 14th (local time), James Gorman, CEO of Morgan Stanley, said at the Q3 earnings announcement held that day, “Cryptocurrencies are not a temporary fad,” and “Although it is not yet a large part of the financial sector, cryptocurrencies can evolve, and we can develop together.”

This contrasts with JP Morgan’s stance. According to the US economic media CNBC on the 11th, Jamie Dimon, CEO of JP Morgan, said at a conference hosted by the International Finance Institute, “Bitcoin has no value at all,” and “Just as harmful cigarettes should be quit, Bitcoin trading should also be stopped.”

However, both investment banks explained that attention should be paid to regulation. CEO Gorman added at the earnings announcement, “Morgan Stanley will watch how regulators manage the cryptocurrency market.” On the 4th, CEO Dimon also explained, “In some regions like China, Bitcoin will be considered illegal, so I see Bitcoin as ‘fool’s gold.’”

[Image source=EPA Yonhap News]

Meanwhile, concerns have been raised that the cryptocurrency market could trigger a second subprime mortgage crisis. The subprime mortgage crisis refers to the global financial crisis that began in 2008 when major US mortgage lenders went bankrupt. According to CNBC on the 14th, Jon Cunliffe, Deputy Governor of the Bank of England (BOE), expressed concern, saying, “The cryptocurrency market is growing rapidly,” and “If it grows rapidly without regulation in the financial market, it could lead to a second subprime mortgage crisis.”

Deputy Governor Cunliffe also pointed out the volatility of cryptocurrencies as a problem. He emphasized, “In the past five years, Bitcoin’s price has dropped more than 10% in a single day 30 times,” and “As the size of the cryptocurrency market grows, its impact on the market will be greater.”

This content was produced with the assistance of AI translation services.