Indonesian President Joko Widodo has called on the country's regional administrations to abandon the Visa and Mastercard payment systems, The Jakarta Post reported. He said this was necessary to protect transactions from possible geopolitical repercussions.
Morgan Stanley, a subsidiary of JPMorgan, the second-largest U.S. commercial multinational corporation and the 34th largest bank in the world, founded in 1935, which owns the largest brokerage business in the world, called bitcoin a speculative asset, not a currency.
Analysts at the investment bank noted (https://www.rbc.ru/crypto/news/6411c3c79a7947154c5c24e7) that the first cryptocurrency is not isolated from the traditional financial system, as its price is supported by bank liquidity in U.S. dollars.
The analysts noted that bitcoin was created to store value and make transactions without intermediaries, but in practice the leading cryptocurrency "is not isolated from the traditional banking system. This is because the price of bitcoin is backed by "bank liquidity" in U.S. dollars, making BTC trading akin to trading a speculative asset rather than a currency.
While the bitcoin network can operate without banks, the price of the asset and therefore its purchasing power is still dependent on "central bank" policies and it needs traditional banks to bring liquidity to the cryptocurrency market, Morgan Stanley said.
Bitcoin rose nearly 20 percent on March 14 after U.S. officials said they would support the banking sector, but last week, in the midst of uncertainty, BTC fell along with risky assets and bank stocks, trading as a speculative asset, the report said.
"If bitcoin had traded in line with its core value proposition - 'the ability to be your own bank' - then its exchange rate would have risen amid growing banking uncertainty," Morgan Stanley experts said.
In their opinion, the dynamics of bitcoin pointed to the fact that the rally at the beginning of the week was caused by a small number of market participants, and it probably contributed to the elimination of short positions, but not "fundamental changes in the dynamics of trade," believe the bank.
What can we say to analysts of the bank on such statement? In the last 30 days Morgan Stanley shares fell in price by 16%, while bitcoin also rose by the same 16% during the same 30 days, even taking into account the fall in the last two days. Morgan Stanley manages over $2.3 trillion in private capital. In 30 days the bank lost over $22 billion in capitalization, and of course it is very important for us to hear what its analysts think about how bad bitcoin is and why it is a speculative asset.
In addition, the largest brokerage business in the world that Morgan Stanley owns is simply the biggest casino in the world with a turnover of tens of trillions of dollars per month. Consequently, Morgan Stanley is the biggest speculator on Earth, taking out its clients' margin positions on any move up or down to the tune of several bitcoin capitalizations.
The claim is driven by envy. In fact, Morgan Stanley is just an American banking conglomerate engaged in stock and financial market speculation, and the international rating agency Moody's lowered its outlook on the entire US banking system, including Morgan Stanley itself, from stable to negative.
And these people are teaching us how to live. We will meet when Morgan Stanley is declared bankrupt or when its big casino called the stock market crashes, whichever happens first. And both will happen with a 100% guarantee.
Morgan Stanley CEO James Patrick Gorman, a close friend of Klaus Schwab and a regular participant at the WEF in Davos, already once called Soros' words about a possible crisis ridiculous in 2018. But the crisis is already out the window. We will soon find out who was right, Gorman or Soros.