The crypto market has witnessed an explosive bull run in the last couple of months, with major coins experiencing a major price hike. This has led to different figures in the financial and tech sectors to offer their opinions on the scenario. The announcement of Facebook’s entry into the crypto market has also fueled the unprecedented growth and development in the market.
On Thursday, CNBC hosted Morgan Stanley Chairman and CEO James Gorman and Bitcoin worshipper Brian Kelly for an interview about the ongoings in the crypto markets.
Gorman spoke first about the crypto market as well as Facebook’s crypto Libra, saying that the crypto assets market has a long way to go before it can compete with other financial markets. Gorman was however quick to show his discontent about Facebook’s Libra saying that the high number of partners involved in the development of the platform was worrying. He said:
“I would be slightly worried if anyone had 28 partners, I mean that is quite a lot. It still does not look like a focused initiative for me though.”
Gorman was dismissive of the cryptocurrencies, especially Libra, saying that he does not think the new crypto will pose any threat to Morgan Stanley. He dismissed the high number of partners saying that if Facebook approached his company he would not have joined the fray.
Gorman also said that he does not understand why the world would want another form of stored value since there are fiat currencies and precious metals.
Banks Are Feeling The Heat From Cryptocurrencies
However, Brian Kelly, the renowned CNBC Bitcoin bull put Gorman to his place. Kelly pointed out that Bitcoin’s dominance will continue even in the future citing the entry of institutional players in the market. He also explained that the main reason why Morgan Stanley officials were bearish against Bitcoin was due to the intense competition and threat it brings in the financial industry. Kelly said:
“Gorman is the head of the Morgan Stanley, of course, they would bet against Bitcoin. I am here making the other side of the bet. Bitcoin is not going to put companies like Morgan Stanley out of business but they will definitely be disrupted.”
Kelly also explained that various supporters of the conventional finance sector have softened their stance on Bitcoin and other cryptos including JP Morgan CEO Jamie Dimon. He pointed out that major financial institutions are now joining the crypto market with their own cryptocurrencies and tokens. Kelly said that all that was important in the crypto space is the entry of institutions to spur their demand.
Will Stanley Morgan’s CEO eat a humble pie in the future when his dismissal of Libra backfires? Share your thoughts with us in the comments section.