Morgan Stanley

Morgan Stanley: `Regulators Need the Blockchain Master Keys´

Investment bank Morgan Stanley stated in a report they have been receiving many calls from people interested in investment opportunities with bitcoin and other cryptocurrencies. However, the bank implied bitcoin and its ecosystem would need to submit itself to regulation prior to seeing any future growth. They want regulators involved so the blockchain can be `adequately´ controlled. “Regulators are looking to have a master key so all transactions are visible to them,” the bank noted.

Also read: Popular Demand Spurs Goldman Sachs to Start Covering Bitcoin

Morgan Stanley: Regulators Looking For a Master Key to the Blockchain

The investment bank also mentioned they have no idea why bitcoin and other cryptocurrencies are growing so quickly. They believe rampant speculation on crypto markets have driven the price upwards for no clear reason. They said: “It is not clear why cryptocurrencies are appreciating so rapidly (apart from the appreciation itself drawing in more speculation against a potentially inefficient ability to sell).”

A Market Watch article, which quoted Morgan Stanley, further stated the blockchain is a “centralized” ledger that records all transactions and that the investment bank did not specify what regulations would be necessary. They simply announced that regulations and controls should be put into place.

Morgan Stanley’s Interest in Permissioned Blockchains

Part of these regulations could involve Morgan Stanley’s acceptance of “permissioned blockchains,” which they wrote about last May in a blog titled “banking on the blockchain.” They would create controlled blockchains only authorized individuals could access. This would allow them to maintain the prominence of their banking industry and adopt streamlined regulations while leveraging blockchain technology.

In the post, they referenced another article, saying:

Permissioned blockchains—a digitally distributed ledger where authorized users can record, process and verify transactions—to streamline their own operations and costs…

Satoshi Nakamoto’s Original Vision

This may indeed streamline their costs, but it would likely also sacrifice Satoshi Nakamoto’s original intention of blockchain technology, which was to put banking inside the hands of the individual.Morgan Stanley: Regulators Looking For a Master Key to the Blockchain

In the White Paper, Satoshi said, “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.”

This is what Satoshi’s envisioned, but it remains to be seen whether Morgan Stanley’s idea of the master key in blockchain technology will trump the idea of bypassing third parties. Many in the ecosystem still hope Satoshi’s original vision will prevail in the end.

Do you think the banks will be able to effectively regulate bitcoin and create permissioned blockchains? Share your thoughts below!


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  • chrisdbarnett

    Dear oh dear oh dear. They’re absolutely clueless.

    • Sven

      Clueless enough to know they need to control it?

      • Alex

        Clueless enough to think they could get it.

        • BenRickerts

          But never underestimate them. They are devious and wholly corrupt. Ethereum is already creating a venue for them to exert control within. This will be an all out war.

  • Prakash Daulatabad

    the virtues of blockchain and bitcoin must a charecteristics of joined person for this task. most vauluable values are transparency, speed and no third party control ( avoidance of ugliness of human mind). it will take lot of time to dehumanise the function

  • Liberty88

    No thanks Morgan Scam-ley!!

    You will not be getting the master keys! You guys are the ones responsible for all the fraud in the financial system along with the big banks.
    Bitcoin does not need your help to grow. Nice try – you guys are part of the old system that is dying.

    Nighty night!

  • Zyo

    Let me help them:

    “Regulators are looking to have a master key”

    there is no master key, else it would leak and the whole system would be doom to failure.

    “so all transactions are visible to them”

    They are already all visible to everyone who download the blockchain… no need of any “master key”

    • CryptoSam

      “Trustless” is just beyond their comprehension, omg I am still lol’ing

    • Marcello

      These guys are so stupid and incompetent, they are not so much dangerous as I thought in the past.

      • BenRickerts

        No they are not. They are very devious and extremely capable. They will do all in their power to maintain their criminal controls. They are very good at what they do and they have no conscience. They would murder their own mothers in cold blood for money. Do not underestimate them. I know. I worked in their crime family for 35 years. They are much worse than any of you could ever imagine.

  • LiterallySean

    “the bank implied bitcoin and its ecosystem would need to submit itself to regulation prior to seeing any future growth.” lol ok. I cant wait for crypto to eat these clueless banks alive

  • cmil

    hahahaha, good luck withthat.

  • cmil

    So it is clear now that Morgan Stanly has no clue about what Bitcoin is and how it works.

    • drowninbleach

      I think it is willfull pretension of ignorance, though. They hope to influence Joe Public with their clueless shoulder shrugging.

      • Sven

        Well citizens in the past (several hundred years) have just given the banks and Gov control over their lives so Morgan Stanley are just waiting for this. Most people of the world are still concerned about the external entertainment models to distract the mind so will most likely cave in to the financial system when times get tough. There are very few “fighters” out there. Most people are pansies of the highest order.

        • BenRickerts

          Excellent analysis. Very true for sure.

  • Jean-luc Lejoly

    the whole point of the Cryptocurrency is to take the eventual control of Banks and centralized institutions out of the equasion, of transfer of funds and availability of funds to everybody. This is why the cryptocurrency ecosystem as a whole really does not need any ‘bank’s stamp of approval’. Banks are allowed to use the technology, a bit like what happens with Ripple in asia, but they cannot and will not be allowed to get any different access or visibility or control over it than every single cryptocurrency user. That would be going completely against all that cryptocurrency stands for

    • Peter Groves

      Agreed.?

    • BenRickerts

      They already are through Ethereum. Think about it. The death of POW will be a huge step for them all.

      • Richard Wiig

        How are they through Ethereum?

        • BenRickert

          I believe their ability to code into the Block chain will give them centralizing powers over their transaction fees. this will allow them to just replicate the system they currently have over the Block chain. The fees will be lower and more competitive to be sure, but the control will remain intact. Just a hunch.

          • Richard Wiig

            Over their, central bank currency, transaction fees? Why would I exchange my crypto for their crypto when their crypto doesn’t interest me? Government would have to hold a gun to my head. Time will tell whether they try to do that or not.

          • free craig

            That gun would be the IRS only accepting their own cryptocurrency.

          • Richard Wiig

            That would be no gun. Their problem is losing their monopoly on money creation. Creating their own crypto currency wouldn’t fix that for them. It cannot be fixed.

          • free craig

            They would just make their coin the only legal tender and call everything else terrorism support and make it illegal.

          • Richard Wiig

            But as someone pointed out. They’ve tried making it illegal already and it didn’t work.

          • BenRickert

            These bottom feeders absolutely will try and destroy BTC through pressuring regulators and legislatures. The beauty of that is, if they were successful it would only be in their local domiciles and they would be effectively cutting their own throats. Because trade and markets would thrive without them. At some point I suspect even they will look past their unfettered greed and realize that they need to play in this space in some way. Enter Ethereum.

          • BenRickert

            I was referring to the large and powerful cartels like JP Morgan, Merrill Lynch, BOA etc etc. They rape people at all levels of financial transaction. Whether it be trough wire transfers, fund swapping, commissions, IRA’s negative rate savings accounts and on and on. The only way these thieves have maintained financial buoyancy is through monetary rape and cheating and stealing. They are backed by entire committees of congress and the government that they buy through lobbyists. Most people will not forego the learned convenience that these criminals have trained them on. These criminal cartels will just utilize a customizable Block chain like Ethereum, to implement their systems of fees and theft. It will be the same dirt bags, just a different store front. People tend to underestimate these parasites in banking and finance. They invented non-violent theft. They’re better at it than anyone. They won’t give it up. Mostly because NONE of them could make a DIME legitimately. I don’t understand how people think they can completely do away with Fiat currencies. It’s like saying you can create a Utopia on Earth without crime and hatred. It’s not gonna happen. BUT. We can surely level the playing field quite a bit.

          • Richard Wiig

            But again, they can create their own currency, but getting people to adopt it is another thing. Why would I ditch bitcoin or ethereum or whatever else, for Morgan Stanley coin? I wouldn’t. In regards to not completely doing away with fiat, I think cryptocurrencies have that potential. Presently they are high risk, because technologically things are changing so fast that who knows what might be around the corner, but once established and fully trusted, why would you remain in fiat when you can go crypto? Fiat is fiat because it is a backed by nothing and controlled by governments who can inflate it almost at will. They cannot do this with bitcoin, or ethereum, or whatever else manages to establish itself as a trusted currency. The fact of that is going to have major consequences.

          • BenRickert

            I don’t see them as interested in “their own currency”. They are interested in Block Chain applications to their fee based businesses. Faster transaction and settlement times and lowering their costs so they can expand their effective margins while giving the blind sheep customers the illusion of a price cut. I highly doubt these crooks will venture into the actual currency space. Except for maybe setting up exchanges and raping users on transaction fees.

          • Richard Wiig

            If they create their own blockchain applications how does that threaten Ethereum? We are back to my original question, which I’m still not clear on.

            In your answer below are you suggesting they’ll be able to take control of the Ethereum blockchain and reshape it to their image?

            “I believe their ability to code into the Block chain will give them centralizing powers over their transaction fees. this will allow them to just replicate the system they currently have over the Block chain. The fees will be lower and more competitive to be sure, but the control will remain intact. Just a hunch.”

  • Take the red pill.

    • Liberty88

      Too late – they took the Hillary blue pill….

  • drowninbleach

    These guys are so incredibly evil! They continue their diabolical attempts to control every tiny aspect of our lives as if we would never even resist! “Cryptocurrencies are appreciating so rapidly” because we are sick and tired of banks destroying a rich, diverse planet of people who just want to live and let live. So fuck off with your regulators and centralized control power grabs.

    • Liberty88

      Amen brother.

  • angreeee .

    all regulators should die

  • CryptoSam

    That made me LOL
    RIP Stanley….

  • They are sooooooo cluuuelesss. A master key??? Moooorrronnns!!! Morgan Stanley, make your own spy coin and let’s see how it flies??? Whoever is allowing the press release or interview must be snickering inside. Morgan Stanley just made themselves the last place to go on this subject. Well, unless it is a new tech comedy show. Now,,I understand the smile on Sterlin.

  • Natoshi Sakamoto

    At first I got kinda pissed about their pretensions, but as I cooled down… It’s hilarious! Those stinky old perverts really think our generation would be submitted to theirs? kkkkkkkkkkkk Please Morgan Scamley, stop being ridiculous. Otherwise you’ll have to change you business from banking to sitcoms, so much hilarious you are!

  • Peter Groves

    SURELY they can’t be Serious! IF they (regulators) get In, they’ll only Fuck It Up! What’s to Regulate, Idiots? All the transactions are ALREADY visible! We’re not Stupid, right? #fohMStankey

  • Angelo Jamaica

    Lol, you mean those guys who have been regulating opps i mean manipulating the precious metal markets etc etc
    Instead of calling them regulators I do believe they should be classified as MANIPULATORS. Sorry I just had to express myself. They must not have received their pink slips yet, your fired.

  • William Matteoni

    It goes against the very core of cryptocurrencies foundation and belief. Just another attempt to regain and maintain control over our money. Shame on you!

  • yo yasse

    @ “The investment bank also mentioned they have no idea why bitcoin and other cryptocurrencies are growing so quickly.” Well Morgan Stanley, I can explain that to you: Everything´s a matter of TRUST and people simply don´t trust greedy, unscrupulous banks and bubble creating central banks any more. That´s why they shift their hard earned money into solid alternatives which do deserve their trust, cryptocurrencies.

  • Ausi Olivas

    Bankers are unfortunately a little smarter than we are giving them credit for. The first task of the mighty ( diabolical) Bank system will be to discredit and villify cryptos. We need to share and educate our peers about the technology and advantages of cryptos. “Accurate information is our true ally.”

    • Sven

      “Discredit and vilify” has already been tried.

      The next stage is to wait for all the VC money and all the developers to expand the payments systems. The Gov can’t do this (look at Obamacare website).

      Once this is complete, the Gov and bankers will have small transaction fees at ALL POS’s and exchanges. Remains to be seen if they will still tax it as a commodity. This will of course harm it as a currency.

      This fight is still early on and the ignorance of the masses is still GREAT.

      • Ausi Olivas

        I agree whole heartedly with your comment. It is the ignorance of the Masses that we need to educate. And in this case Big media is not our ally. Peer to peer education is.

      • Richard Wiig

        Is it possible for them to tax it at every point of exchange? It’s hard to see how they could achieve that, especially given that the technology stays well and truly ahead of them. Very interesting times we are in.

  • KJ Burk

    Handing over a “Master Key” to any 3rd-Party financial institution would completely undermine the purpose of Bitcoin and Satoshi’s vision.

  • Richard Wiig

    Hahahaha…. The joke is on them.

  • Vako

    I bet they do. Think of all the money all the banks stand to use. Banks went from holding our money and paying interest to ripping us off with fees and providing little to no valuable services for lack of an alternative.

    The blockchain and its global users provide far better validation than any one entity. This reeks of desperation and a grab for power and control

  • Global Services Ltda

    The Federal Reserve Bank of the US attempted to sink BTC with no success.
    The Federal Government of the US attempted to sink BTC by auctioning millions of Silk Road’s confiscated coins in auctions of 30%, 30%,…. then bad press.
    The US media attempted assasinations on cryptocurency however the propaga failed.
    Australia auctioned tons of BTC with little effect as China attempted to make the coins illegal which made a big drop but here we are today.
    Cryptocurrencies are outperforming the DOW, DAX, FTSE, BOVISPA, ………, are outperforming anything Wall Street has to offer.
    Even China and Russia have given up on the destruction of the cryptocurrencies and they are pretty persistant.
    It is just a matter of time before these pirates at Morgan Scamly devise a manner to crack, enter and manipulate BTC but then there is ETH and many more.
    Any time a security is “REGULATED,” get ready to take it in the shorts because these Wall Street con artists have the world by the short hairs and only one goal: “Get their dahlas now and we’ll tualk returns later.
    I would not give Morgan Scamly a sniff of my horse apples much less a key to anything where they may even think they have access to my money.
    Wall St. investments especially forex are not 0 sum investments, somebody has to lose for the other to benefit. Wall St Bankers live in multimillion dollar apartments with their weekend places on the Bahamas or U.S.V.I. while mom and pop investor live on dog food.
    Where are you going to find a $100 investment on Wall St. that turns into $Million$$$ in 5-7 years? (BTC)(ETH)
    Good luck with regulated investments as the regulators regulate the $$$$ into their accounts and leave the rest as did Bernie Madoff.
    I say, Wall Street should have absolutely no access to cryptocurrency other than a buyer or seller, DEALER, NO.
    I recommend barring any investment by Wall St. as they have enough money to manipulate the cryptocurrencies without the “key.”
    We have arrived to a point where our financial system and government no longer serve the people, we are nothing but fat cattle with government/banker parasites attached to out jugulars, put the Wall St. trash on the street as they have been doing to others for a century.
    Never regulate cryptocurrency, ever!

    • BenRickerts

      Amen and AMEN! But this battle has just only barely begun. It is far from over.

  • Bruce Rash

    Good lord…

  • Bill Nichols

    Moron Stanley misses the whole point, Bitcoin doesn’t need their control over its transactions, require their assistance, or need any regulators to control or promote its growth and don’t let them know these are the reasons for Bitcoins popularity. Moron Stanley wants to see Bitcoins growth limited to slow the migration of their customer base to blockchain, but it won’t be long and those idiots will have a coin offering too so they’re not left behind.

  • PharmD

    Ahahahaha. This was funny.
    Love that people are finally seeing these lunatics for what they are. However, if people care enough they should research Ethereum and see that it’s really the big players “shapeshifting” to their new identity. It’s what they’ve always done once discovered. Who is a major backer of Ethereum….? JP Morgan!

  • BenRickerts

    This tact is SO predictable. Morgan Stanley is a criminal cabal. Just like GSA, JP Morgan Merrill Lynch et etc. They are crapping their $3,000.00 suit pants at the prospect of their criminal organizations and their controls weakened by a true free market. I worked inside this organized crime family for 35 years. I will tell you beyond any doubt that they have only THEIR OWN interests at heart. Those “interests” are specifically, how to cram more money in their own pockets.

  • AC

    No master key for morgan stanley or any other centralized agency or govt. The only reason btc and other cryptos works is because central bankers and goldman sachs cannot control it

  • They can go f___ themselves. Regulations enable politicians to line theirs and their cronies’ pockets with our money.