The stock of Morgan Stanley (NYSE:MS) closed at $53.10 gaining 0.85% in Friday’s trading session. In the meantime, the bank has stated its opinion on bitcoin and the cryptocurrency craze saying that there is a long way too go before bitcoin can be widely used in making of payments.
The company’s spokesperson opined, “The remarkable appreciation and increasing involvement of institutional moneyseems to be lending Bitcoin a legitimacy of sorts and supporting the perception that it could become a widely adopted payments tool in the long run.”
Bitcoin’s decentralized nature spells out a series of benefits for payment systems, one of them being boosted security. However, Morgan Stanley asserts that this decentralized nature might be making it rather difficult for the cyptocurrency to be able to compete effectively with various centralized payment systems, for instance credits cards provided by Mastercard and Visa. The firm in a note outlined that the centralized systems for consumer payments were highly formidable and were associated with formidable cost advantages.
Mastercard and Visa are acceptable in more than 44 million locations around the world according to the data provided by Morgan Stanley. It has also been projected that the acceptance network might soon be experiencing exponential growth over the next 5 years.
Nonetheless, a significant number of merchants are accommodating bitcoin as a payment method and there have been rumors in circulation that soon Amazon.com, Inc (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) might soon be considering allowing it.
The outlets accepting credit cards are of course nearly ubiquitous. The wait times and the higher transaction costs that are associated with bitcoin reduce its popularity, though that may change with improved cryptocurrencies off the original bitcoin blockchain like bitcoin cash (BCH).
Morgan Stanley seems unshaken by the matters surrounding bitcoin and in its recent statement it outlined that on its part it sees the value of decentralization. The decentralized ledger technology associated with bitcoin and a wide ray of other cyptocurrencies according to the company is the foundation that people around the world need to notice.